The Singapore Exchange S68 (SGX) Group has reported a total securities market turnover value of $25.03 billion in February 2024, 13% higher y-o-y and 22% higher m-o-m despite fewer trading days compared with January.
Securities daily average value (DAV) on SGX Securities rose 34% m-o-m in February to $1.3 billion as Singapore's securities market remained the second most-traded in Southeast Asia.
Retail led the jump in activity, with the number of retail accounts that traded in February up 34% m-o-m at a 12-month high.
There were a total of 625 listed securities in February compared to 629 in January.
Total market capitalisation, however, decreased to $767.57 billion, down 0.8% m-o-m and 7% y-o-y.
Notwithstanding, derivatives daily average volume (DAV) increased 24% y-o-y in February to 1.3 million contracts, up 10% on a m-o-m basis. Total derivatives traded volume climbed 9% y-o-y to 21.9 million contracts.
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Equity market participants were able to benefit from “unfettered access” to SGX Equity Derivatives, with deep liquidity observed in China and Taiwan index futures.
The volume of SGX FTSE China A50 Index Futures gained 8% y-o-y to 8 million contracts, with DAV rising to 534,972 lots, the highest since August 2020. The contract is the world’s most liquid international futures for Chinese equities.
SGX FTSE Taiwan Index Futures volume was steady y-o-y at 1.3 million contracts. With positive news flow from the global technology sector through February, investors were able to continue risk-managing Taiwan equities even with local markets closed, says SGX.
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Commodity derivatives were a standout in February, recording broad-based gains as traded volume rose 39% y-o-y in February to 4.9 million contracts. Benchmark iron ore futures volume increased 41% y-o-y to 4.3 million contracts, with a single-day record of 47.6 million metric tonnes traded on 21 February. Volumes were particularly strong post-Lunar New Year holidays amid robust risk-management activity.
Meanwhile, forward freight derivatives volume climbed 16% y-o-y to 224,242 contracts, with open interest also rising on the back of higher freight rates, especially for Capesize due to increased iron ore flows. The unique SGX Commodities offering enables market participants to risk-manage both cargo and freight on a single liquid and capital-efficient platform.
The volume of SGX SICOM Rubber Futures, the global pricing bellwether for natural rubber, also gained 41% y-o-y to 253,535 contracts. DAV reached 66,800 metric tonnes, the second-highest monthly level on record. Petrochemical derivatives volume more than trebled y-o-y, bringing volume for the first two months of 2024 to 10.6 million metric tons — almost matching the total for FY2023.
On SGX FX, foreign exchange (FX) futures volume rose 22% y-o-y in February to 3.6 million contracts.
Gains were led by SGX INR/USD Futures, with volume reaching an all-time high of a notional US$5.5 billion or 228,091 lots on 15 February. Open on SGX INR/USD Futures interest subsequently climbed to a record US$4.85 billion or 201,213 lots on 16 February.
The volume of SGX USD/CNH Futures — the world’s most widely traded international renminbi futures — also increased 27% y-o-y to 1.9 million contracts.
Meanwhile, the amount issued on SGX Fixed Income from 99 new bond listings gained 28% m-o-m in February to $29 billion.
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Highlights included The Korea Development Bank’s US$3 billion dual-tranche offering, Rakuten Group’s US$1.8 billion three-year senior notes as well as Korea Electric Power Corporation’s US$1.2 billion three-year senior notes.
Other notable listings include Prologis, L.P.’s inaugural CNY1.5 billion offshore renminbi bond and three tranches of U.S. dollar-denominated Insurance Linked Securities issued by Phoenix 2 Re Pte Ltd.
Shares in SGX closed 3 cents lower or 0.32% down at $9.30 on March 11.
