The FTSE ST Mid & Small Cap Index has delivered a notable 9% total return in the third quarter of 2025, outperforming the Straits Times Index (STI), which recorded a 7% return. This performance was spearheaded by PropNex, which achieved a 52% total return, driven by a record first-half net profit.
The index, comprising 74 constituents, maintains a significant 40% weightage in the Singapore Real Estate Investment Trust (S-REIT) sector. The 29 trusts within this sector averaged a 4% total return, whilst the remaining 45 stocks, including three business trusts, averaged a 15% return. Notably, the index recorded a net institutional inflow of $280 million (S$382 million) in the third quarter to 12 August, with significant contributions from companies like iFAST, Frencken, and City Developments.
PropNex’s impressive performance was underpinned by a doubling of its first-half net profit to $31 million (S$42.3 million), alongside a 73.3% surge in revenue to $439 million (S$598.9 million). This growth was largely attributed to a 183.2% increase in project marketing commissions. The company also proposed a 5.0 cent interim dividend, reflecting an 87.6% payout ratio.
The index’s constituents have collectively seen an average daily turnover of $310 million (S$423 million) in 2025, with the S-REIT and industrial sectors leading trading activity. The technology sector, represented by eight constituents, accounted for $132 million (S$180 million) of the total net institutional inflow.
Overall, the FTSE ST Mid & Small Cap Index’s robust performance highlights its diverse composition and the strong market interest in mid and small-cap stocks.
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