Small-Cap Stocks Attract Disproportionate Inflows
In a notable trend within the Singapore market, small to mid-cap stocks have emerged as a significant magnet for institutional capital. Between the beginning of July and August 7, 2025, Singapore-listed stocks collectively recorded a net institutional inflow of S$130 million. While a majority of this capital was directed toward established large-cap companies, a closer look reveals that small- to mid-cap stocks—those with market capitalizations ranging from S$100 million to S$1 billion—attracted inflows at a rate eight times higher than their larger counterparts when adjusted for size. This segment, which encompasses a diverse array of sectors, successfully booked S$42.3 million in net institutional inflows during the five-week period, a testament to the focused interest from major investors. This trend highlights a shift in investor strategy, with institutional players increasingly looking for growth opportunities beyond the traditional blue-chip stocks.
Industrials and Tech Lead the Charge with Strong Performance
The surge in institutional investment was most pronounced in the industrials and technology sectors, highlighting a preference for companies with strong growth narratives. Several firms stood out as top performers, including Frencken Group, CSE Global, and Wee Hur Holdings, all of which booked the highest net inflows in the period. CSE Global, a prominent systems integrator, saw its stock price rally by an impressive 23% during the five-week period, a gain that was supported by its strong operational results. The company also announced that it had secured new orders totaling S$211.3 million in the second quarter, a significant milestone largely driven by heightened demand from the data center market within its electrification segment. This strong performance provides a clear example of how specific, niche sectors are attracting substantial investment.
Frencken Group’s Expansion and Broader Market Implications
Another strong performer, Frencken Group, experienced an even more substantial 35% share price rally, prompting multiple analysts to increase their target prices for the stock. This global technology solutions provider has further demonstrated its commitment to growth by announcing plans to develop a new manufacturing facility in Singapore, a move designed to boost its productivity and capacity. The robust performance of these specific small- to mid-cap companies, particularly those in the technology and industrial sectors, underscores a significant and growing interest from institutional investors in targeted, high-growth opportunities within the Singapore market. This trend suggests that investors are increasingly looking beyond traditional large-cap stocks to find value and future growth potential in more specialized and dynamic segments of the economy, a shift that could reshape market dynamics in the coming quarters.
