Singapore Exchange (SGX) Group reported total securities market turnover of $22.02 billion in January over 19 trading days.
This is 13.3% lower compared to January 2021’s total securities market turnover of $25.39 billion over 21 trading days. On a m-o-m basis, this is 12% higher compared to December 2022’s total securities market turnover of $19.64 billion over 21 trading days. According to the group, the higher m-o-m trading activity came about as investors remain hopeful that China’s reopening will catalyse growth.
In cash equities, securities daily average value (SDAV) stood at $1.16 billion, down 4.13% y-o-y but up by 24% m-o-m.
According to SGX Group, January’s SDAV and total market turnover outpaced turnover growth in most Southeast Asian markets as the turnover increased across all segments. This was led by the constituent stocks in the benchmark Straits Times Index (STI) and REITs as activity rebounded from the end of the year.
The STI increased by 3.5% to 3,365.67 points in January, which is its highest monthly close since April 2022.
In January, the technology sector saw the highest amount of net inflows in Singapore as the internet and semiconductor industries led the global stock market during the month. The same sector saw the most outflows in 2022. Among the 100-most traded Singapore stocks in January, eight represented the technology sector, averaging 11% total returns for the month after a 36% decline in 2022.
On SGX Fixed Income, the amount issued from 38 new bond listings stood at $25.8 billion in January.
In January, SGX’s derivatives daily average volume (DDAV) rose by 5.87% y-o-y and by 17.94% m-o-m to 1.08 million contracts.
The total traded derivatives volume, however, fell by 3.46% y-o-y and 3.13% m-o-m to 19.26 million contracts.
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On SGX Equity Derivatives, the daily average volume of the SGX FTSE China A50 Index Futures was over 193,000 lots during the Lunar New Year Golden Week, representing a record high. The 193,000 lots were up by almost three times from the same period in February 2022.
According to the group, month-end open interest in the contract, the world’s most liquid international futures for Chinese equities, gained 37% m-o-m to 1.1 million contracts (US$15 billion or $19.9 billion), as participants positioned themselves for opportunities from China’s reopening.
However, the volume of the SGX FTSE China A50 Index Futures fell by 14% y-o-y and 3.28% m-o-m to 7.4 million contracts.
The SGX FTSE Taiwan Index Futures contract also saw its average daily volume increasing by 43% y-o-y to 35,000 contracts during the onshore holidays with month-end open interest up 32% m-o-m to about 109,000 contracts.
That said, its volume for the month of January fell by 26% y-o-y and 9.79% m-o-m to 1.16 million contracts.
SGX Nifty 50 Index Futures traded volume dipped by 1% y-o-y but rose 11% m-om in January to 2.37 million contracts, while SGX MSCI Singapore Index Futures volume climbed 2% y-o-y and 4% m-o-m to 1.13 million contracts.
In January, the total market turnover value of exchange-traded funds (ETF) fell 21% y-o-y and 13.14% m-o-m to $357 million. The number of ETFs traded on the bourse, however, rose by 51% y-o-y but fell by 20.38% m-o-m to 250 million shares.
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In foreign exchange (forex), total futures traded volume on SGX forex gained 42% y-o-y but dipped 2.24% m-o-m in January to 2.7 million contracts. The y-o-y growth was led by a 55% y-o-y volume increase in SGX USD/CNH Futures. According to SGX, China’s pivot from its zero-Covid policy and reopening buoyed investors’ risk appetites for the renminbi (RMB), which fuelled hedging demand in Asian FX.
During the month, market participants also sought exposure to India amid lower oil prices and domestic growth momentum, with SGX INR/USD Futures volume rising 31% y-o-y and 14.6% m-o-m.
The average daily value (ADV) of over-the-counter (OTC) forex climbed
ADV of over-the-counter (OTC) FX climbed 18% y-o-y to about US$80 billion in January, making the group on track to reach its medium-term target of US$100 billion.
On commodities, total commodity derivatives traded volume climbed 32% y-o-y to 2.9 million contracts. Iron ore volume rose 37% y-o-y amid positive sentiment on the property sector following China’s reopening.
Forward freight agreement (FFA) traded volume rose by 24% y-o-y in January on the back of increased hedging demand as prices fell after the year-end holiday season.
The volume of SGX SICOM rubber futures, the world’s pricing bellwether for natural rubber, climbed 9% y-o-y.
As at end-January, the total market capitalisation value of 647 listed companies stood at $854.39 billion.
Shares in SGX closed 1 cent lower, or 0.11% down, at $9.15 on Feb 8.
