Singapore-listed small and mid-cap (SMID) equities are attracting renewed investor attention, driven by a wave of share buybacks executed in June.
The corporate activity signals that boards increasingly believe valuations have overcorrected, presenting a buying opportunity after a prolonged period of underperformance relative to large-cap peers.
This shift in sentiment aligns with broader regional trends where smaller companies are regaining market leadership.
Small-cap equities are currently on pace to record their strongest first-half performance since 1991, marking a significant rotation away from large-cap growth stocks.
The rally in smaller firms has drawn fresh capital flows, suggesting a structural change in market dynamics rather than a fleeting trade.
Despite the bullish corporate actions, market participants are advised to exercise selectivity.