New SGX mid-cap index slips in debut week; JP Morgan raises STI target to 6,000

A new Singapore Exchange (SGX) mid-cap index, aimed at giving investors broader exposure to the local stock market, ended lower in the first week of its launch last week amid greater market volatility.

- Timothy Goh

The iEdge Singapore Next 50 Index, which tracks the 50 largest mainboard companies by market capitalisation after excluding the 30 blue chips on the Straits Times Index (STI), closed on Sept 26 at 1,419.86 points, down from the 1,428.66 points when it officially launched on Sept 22.

The index includes many names that have benefited from better liquidity and analyst coverage since the Monetary Authority of Singapore (MAS) announced measures to boost the stock market in August 2024, such as Sheng Siong and ComfortDelGro, as well as 16 real estate investment trusts (Reits).

Food Empire, a constituent of the Next 50, was among those that traded well last week. The instant coffee maker on Sept 24 announced a placement of 17 million treasury shares priced at $2.52 per share to raise $42 million for further expansion.

The move, which increases Food Empire’s share base to 547 million shares, will have a dilutive effect on earnings per share for 2025 and 2026, analysts said. Shares of Food Empire closed on Sept 26 at $2.39 each, down by more than 8 per cent through the week.