In the near term, Vu and Batra believe the index constituents should benefit from further support measures, including any exchange-traded funds (ETFs) that may be created to track the indices and the upcoming deployment of funds from the Monetary Authority of Singapore’s (MAS) $5 billion equity market development programme (EQDP).
The launch of the iEdge Singapore Next 50 Indices is one of the first steps in a long-term commitment by the Singaporean government to develop the stock market and to enhance returns, say JP Morgan (JPM) analysts Khoi Vu and Rajiv Batra.
The Singapore Exchange (SGX Group) launched two indices on Sept 22 to track the performance of the next 50 stocks outside the flagship 30-strong Straits Times Index (STI) — one weighted by market capitalisation and the other by liquidity.
