The Singapore Exchange S68 (SGX) Group S68 has reported a total securities market turnover value of $22.96 billion for the month of May, 19.7% lower y-o-y, although the figure was up by 23.5% on a m-o-m basis.
May had 22 trading days compared to the 19 trading days the month before. May 2022 also had 19 trading days.
During the month, SGX’s securities daily average value (SDAV) fell by 30.7% y-o-y but rose by 6.5% m-o-m to $1.04 billion.
In Asian equities, those in Japan and Taiwan were boosted by improved investor sentiment towards the semiconductor sector while China equities market saw a decline.
As a result, risk management and trading activities were elevated m-o-m. Coupled with the higher number of trading days in May, SGX Equity Derivatives’ total traded equity index futures volumes rose by 16% m-o-m to 13.3 million contracts.
SGX FTSE Taiwan Index Futures traded 1.5 million contracts, up 37% m-o-m. Open interest of SGX FTSE Taiwan Index Futures rose by 61% m-o-m, achieving a month-end record of 150,180 lots (US$8.6 billion or $11.54 billion).
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SGX FTSE China A50 Index Futures – the world’s most liquid international futures contract for Chinese equities – saw volume rise 11% m-o-m to 7.4 million contracts. SGX Nikkei 225 Index Futures volume rose 42% m-o-m to 1.0 million contracts.
The value of exchange-traded funds (ETFs) fell by 31% y-o-y and 2.4% m-o-m to $242 million. During the time, the Lion-OCBC Securities Hang Seng Tech ETF was the most-traded ETF on the bourse in May. In its statement, SGX attributed interest to the ETF to global interest in technology. The tech sector was the strongest one in the global stock market as well as the Asia-Pacific stock market so far this year.
Total derivatives traded volume fell by 7.9% y-o-y but rose by 16% m-o-m to 20.5 million contracts.
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Volume in commodity derivatives rose by 55% y-o-y and 13% m-o-m to 3.8 million contracts as demand for risk management grew.
Total iron ore derivatives traded volume increased by 9% m-o-m and surged 54% y-o-y to more than 3.2 million contracts, bringing the daily average volume for iron ore to a new record. SGX says the record was due to iron ore gaining recognition as a proxy for industrialising Asia.
The Shanghai Rebar Futures contract, launched in October 2022 as part of SGX Commodities’ ‘Virtual Steel Mill’, saw daily average volume soar 133% m-o-m as adoption continued to rise.
In May, volume for dry bulk forward freight agreements (FFA) rose 63% m-o-m to 217,580 contracts. The volume for SGX SICOM rubber futures rose by 20% m-o-m to 205,475 contracts, which was attributed to China’s reopening, which led to increased activity from market participants.
In foreign exchange (forex), total forex futures traded volume grew by 20% m-o-m to 2.9 million contracts.
Volume of SGX USD/CNH Futures rose 19% m-o-m in May to nearly 1.8 million contracts. This was attributable to economic data and monetary policy decisions, which led to heightened hedging activities.
As at end-May, the benchmark Straits Times Index (STI) fell by 3.4% m-o-m to 3,158.8 points.
The total market capitalisation value of 643 listed companies stood at $802.1 million as at end-May. This is lower than April’s 645 listed companies and total market capitalisation of $824.8 million.
Shares in SGX closed 3 cents higher or 0.31% up at $9.62 on June 13.
