AEM Holdings, Top Glove Corp, UI Boustead REIT and PC Partner Group have been included in the iEdge Singapore Next 50 Indices, following the latest quarterly balancing review.
These four companies displaced the following four companies: Singapore Post, Digital Core REIT, Wee Hur Holdings and China Sunsine Chemical Holdings.
The same changes were made to both variants of the iEdge Singapore Next 50, introduced by the Singapore Exchange to lift interest in companies outside the 30 Straits Times Index component stocks.
The two variants are: iEdge Singapore Next 50 Index and the iEdge Singapore Next 50 Liquidity Weighted Index.
The changes will take effect on June 22. The next review will take place in September.
SGX says that technology is becoming structurally significant within the index.
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After this quarterly review, technology-related exposures spanning multiple Revere Business Industry Classification System sectors will account for around 26.2% of total weight – up from 16.6% – led by technology names such as UMS Integration and Frencken Group; alongside the platform-based constituent iFAST Corporation, as well as chip tester AEM Holdings, the latest inclusion.
Thanks to the AI mania, AEM shares have been on a tear, gaining more than 430% year to date.
UMS and Frencken, both of which are deemed key local semicon plays, have done well too, up around 117% and 105% respectively.
According to SGX, from January to May, the iEdge Singapore Next 50 Liquidity Weighted Index generated a total return of 12.3%. In contrast, the Straits Times Index returned a total of 10.8%.
