SINGAPORE (July 8): The month of June saw total securities market turnover of $38.02 billion over 22 trading days, according to Singapore Exchange (SGX)’s monthly market statistics report.
The amount represented a 74% increase y-o-y, and a 40% m-o-m rise from May’s value of $27.15 billion.
SGX said that the global financial and commodity markets were optimistic on the reopening of major economies, despite a potential new wave of Covid-19 infections.
In cash equities, securities daily average value (SDAV) climbed 50% y-o-y to $1.73 billion.
During the month, the market turnover value of exchange-traded funds (ETF) jumped 138% y-o-y to $487 million. This was due to the SPDR STI ETF trading 10 times higher y-o-y at $210 million, with fund size crossing the $1 billion mark.
The benchmark Straits Times Index (STI) gained 3.2% in June to 2,589.91.
In June, Malaysian iron ore producer, Southern Alliance Mining joined the bourse, while the Asian primary bond markets continued to gain momentum as issuers from Asia broadly increased their fundraising activities.
See: Southern Alliance Mining files for IPO of 76 million shares at 25 cents each
The value of new bond listings was up 43% month-on-month (m-o-m) at about US$23.8 billion ($33.17 billion).
See also: China real estate, global economic growth to stabilise in 2024: IMAS survey
In the same month, SGX launched 10 Singapore Single Stock Futures (SSFs) to meet a growing demand for a broader suite of Singapore-linked equity products.
See also: SGX to launch Singapore Single Stock Futures in June; signs MSCI Singapore license agreement
The exchange also announced plans to introduce SGX FTSE Taiwan Index futures in July.
See also: SGX to include SGX FTSE Taiwan Index futures to gain exposure to fast-growing Taiwan stock market, and SGX’s FTSE Taiwan index futures to mitigate earnings loss from expired MSCI contracts: DBS
Total equity index futures traded volume on SGX dipped 6% y-o-y to 14.5 million contracts. The volume represented a 20% increase m-o-m, the highest in three months, led by an increase in Nikkei 225 Index Futures.
MSCI Singapore Index Futures and FTSE China A50 index futures increased 14% and 12% m-o-m respectively.
Total foreign exchange (FX) futures traded volume on SGX rose 9% y-o-y and 10% m-o-m to 2.19 million contracts, which is the highest in three months, despite steady institutional demand to manage risk.
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SGX USD/CNH Futures traded volume dipped 6% y-o-y to 851,753 contracts, while SGX INR/USD Futures climbed 23% y-o-y to 1.28 million contracts.
On June 29, SGX announced that it was fully acquiring BidFX for $178.3 million. The move expanded the bourse’s reach as Asia’s biggest FX futures market place into the global over-the-counter (OTC) market.
See also: SGX to fully acquire cloud-based forex trading platform BidFX for $178.3 mil, and BidFX acquisition a medium-term positive for SGX: analysts
SGX noted that there was increased demand in derivative trading in the commodities market from economic recovery and ongoing physical supply dislocations arising from the Covid-19 pandemic.
SGX SICOM rubber futures, the world’s pricing bellwether for natural rubber, fell 6% y-o-y to 129,420 contracts.
SGX’s high-grade iron ore futures saw a 477% surge y-o-y to a record monthly trading volume of 55,960 contracts.
Forward freight derivatives traded volume on SGX surged 83% m-o-m in June to 127,773 contracts – a record high – on the back of a recovering dry bulk freight market, in particular for the Capesize vessels driven by iron ore trade flows.
Shares in SGX closed 5 cents higher, or 0.6% up, at $8.26 on Wednesday.
