The Singapore Exchange (SGX) has reported a significant surge in trading activity and net institutional inflows for mid and small cap stocks since May. More than 80% of nearly 120 non-index stocks have experienced increased trading turnover, with Oxley Holdings leading the charge. Oxley’s average daily turnover (ADT) jumped to $0.583m, marking a 10.6-fold increase since late May, whilst its year-to-date average reached $0.221m.
The FTSE ST Mid & Small Cap Index has generated a 14% total return since the end of May. Although the index comprises 74 stocks, there are over 190 stocks listed on SGX within this market capitalisation range. Notably, UOB-Kay Hian Holdings recorded the highest net institutional inflow of $23.09m, with its price-to-earnings (P/E) ratio rising from 7× to 10×. CSE Global followed with $16.1m in inflows and a P/E increase from 11× to 16×.
The non-index stocks have attracted over $100m in net institutional inflows since May. The top 10 non-index stocks with the highest proportional uptick in ADT include PSC Corporation and Soilbuild Construction, which have seen notable growth in trading activity.
The SGX update highlights the dynamic nature of mid and small cap stocks beyond the index constituents, showcasing their potential for significant returns and institutional interest. As these stocks continue to gain traction, they may present attractive opportunities for investors looking to diversify their portfolios. The full-year results for Oxley Holdings are expected by the end of August, which could further impact trading activity and investor interest.
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