The Singapore Exchange (SGX) Group S68 has reported a total securities market turnover value of $23.6 billion for the month of August, 2.88% lower y-o-y, although the figure was up by 10% on a m-o-m basis.
During the month, the securities daily average value was unchanged y-o-y at $1.1 billion but is up 5% m-o-m.
Derivatives volume rose strongly in August as more international investors turned to SGX’s platform to manage risk amid China’s efforts to boost its economic recovery.
Derivatives traded volume increased 16% in August on both a m-o-m and y-o-y basis to 23.7 million contracts, with broad-based gains across equities, foreign exchange (FX) and commodities. Derivatives daily average volume (DAV) climbed 7% m-o-m to 1 million contracts.
Equity index futures traded volume on SGX Equity Derivatives rose 12% m-o-m in August to 14 million contracts, led by an 18% m-o-m increase in SGX FTSE China A50 Index Futures to 8.7 million contracts.
Trading of the A50 futures was the third-most active on record on Aug 28, following China’s decision to reduce stamp duty on securities transactions as part of its economic stimulus measures.
GIFT Nifty 50 Index Futures traded volume gained 13% m-o-m in August to 1.6 million contracts, while open interest in the contract grew 8% m-o-m to 215,000 lots or a notional US$8.4 billion ($11.44 billion).
SGX MSCI Singapore Index Futures volume climbed 5% m-o-m in August to 1.2 million contracts, with elevated overnight T+1 activity of almost four times typical levels observed in mid-August in tandem with news flow on corporate earnings.
Meanwhile, uncertainties over the outlook for interest rates drove currency risk management on SGX FX. Total FX futures traded volume rose 26% m-o-m in August to 4.2 million contracts — an all-time high — with average daily volume hitting a record notional of almost US$12 billion.
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The volume of SGX USD/CNH Futures increased 18% m-o-m in August to almost 2.8 million contracts, also a record. SGX INR/USD Futures volume gained 11% m-o-m to 1.2 million contracts.
Another all-time high recorded is the commodity derivatives traded volume, which rose 52% y-o-y in August to 5 million contracts. There was broad-based growth across products, with multiple DAV records in iron ore, rubber and dairy derivatives.
Benchmark iron ore volume increased 54% y-o-y to in August 4.5 million contracts amid uncertainties in China’s property market. Financialisation continued to gain traction, with the proportion of 62% Fe Fines futures traded on-screen reaching a new record of 54.6%, even as Negotiated Large Trade volume continued to grow. Open interest averaged 2.2 million lots — also a fresh peak.
SGX SICOM rubber futures volume climbed 51% y-o-y in August, with DAV at a record 11,504 lots as a stronger global transportation outlook bolstered demand. The contract is the global pricing bellwether for natural rubber. Dairy derivatives set a record 78,504 lots on the back of heightened volatility, as the lowest dairy prices in three years spurred hedging.
The Straits Times Index (STI) fell 4.2% m-o-m to 3,233.3.
August was a heavy month for Singapore dividends, with more than 100 stocks going ex-dividend. For the first eight months of the year, the STI’s total return stands at 3.8%.
The Singapore stock market saw net institutional inflow of $408 million and net retail inflow of $600 million in August.
SGX-listed companies continued to tap the equity capital markets in August, with secondary fundraising up 5% y-o-y at $214.4 million.
Shares in SGX closed 4 cents higher or 0.41% up on Sept 13 at $9.72.
