The Singapore Exchange S68 (SGX) Group has reported a total securities market turnover value of $23.79 billion in March, down 15% y-o-y and down 5% m-o-m, with the same 20 trading days as February.
Securities daily average value (DAV) on SGX Securities shrank 4.9% m-o-m in March to $1.19 billion. Growth was driven by active trading around earnings releases and rebalancing of indices during the quarter, while retail net buying increased across all stock segments, says SGX on April 12.
On SGX Securities, the benchmark Straits Times Index (STI) advanced 2.6% m-o-m in March to 3,224.01.
The market turnover value of ETFs gained 9% m-o-m in March to $306 million, while turnover of structured warrants and daily leverage certificates (DLC) grew 34% m-o-m to $534 million.
There were 624 total listed securities in March, compared to 625 the month prior.
Total market capitalisation fell slightly to $776.53 billion in March from $767.57 billion in February.
See also: SGX total securities market turnover value up 13% y-o-y to $25.03 bil in February
Derivatives daily average volume (DAV) rose 14.3% y-o-y in March to 1.2 million contracts, down 4.9% on a m-o-m basis. Total derivatives traded volume climbed 2.05% y-o-y to 23.9 million contracts.
During the month, SGX Securities welcomed the listing of Phillip-China Universal MSCI China A 50 Connect ETF. The new product builds on the growing suite of China-focused equity funds offered through the ETF link between SGX Group and Shanghai Stock Exchange (SSE).
On SGX Fixed Income, Asia’s leading international bond marketplace, the amount issued from 112 new bond listings rose 17% m-o-m in March to $34 billion.
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Highlights included Sumitomo Mitsui Trust Bank Limited’s US$2.25 billion three-tranche offering, NBN Co. Limited’s EUR1.3 billion dualtranche green bonds and Kansai Paint’s JPY100 billion dual-tranche zero coupon convertible bonds.
In March, SGX Group announced plans to introduce short-term interest rate futures linked to the Singapore Overnight Rate Average (Sora) and Tokyo Overnight Average Rate (Tona), as global investors increasingly seek more transparent and cost-effective tools to hedge and trade fluctuations in interest rates.
Three-month Sora and Tona Futures are targeted to be launched in 2H2024, subject to regulatory approval.
Equities risk-management offering
On SGX Equity Derivatives, the SGX FTSE China A50 Index Futures contract remained the world’s most liquid international futures for Chinese equities, enabling market participants to manage risk amid a focus on the growth outlook for Asia’s leading economy.
Traded volume totalled 24.2 million contracts in 1Q2024, up 7% y-o-y.
SGX FTSE Taiwan Index Futures volume rose 47% m-o-m in March to 1.8 million contracts, the highest since January 2021.
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This brought total volume for 1Q2024 to 4.7 million contracts, up 7% y-o-y.
Fuelled by global demand for AI technology, Taiwan’s semiconductor-centric equities market is gaining significant traction among institutional investors.
GIFT Nifty 50 Futures DAV climbed to 96,978 contracts in March — the highest since the NSE IX-SGX GIFT Connect started full-scale operations in July 2023 — as global funds continued to be drawn to India. SGX MSCI Singapore Index Futures volume climbed 1% y-o-y during the quarter.
Record participation in rubber futures
On SGX Commodities, total derivatives traded volume rose 32% m-o-m in March to a record-high 6.4 million contracts. This brought total volume in 1Q2024 to 16.5 million contracts, up 56% y-o-y.
Growth was observed across a broad range of products, with DAV for SGX SICOM Rubber Futures — the global pricing bellwether for natural rubber — jumping to a record for both March and the first quarter, including a new single-day volume high of 43,538 lots on March 18.
Growing financialisation in the US and Europe, alongside a physical market transiting out of prolonged oversupply, continued to attract fresh participation.
DAV for SGX petrochemicals derivatives also surged to a record for both March and 1Q2024.
Paraxylene (PX) volume grew strongly on more hedging, with healthy PX-naphtha margins as well as higher cross-exchange arbitrage activity, says SGX.
Benchmark iron ore derivatives volume rose 32% m-o-m in March to 5.7 million contracts, an all-time high, amid increased hedging as physical prices fell.
This lifted total volume for 1Q2024 by 59% y-o-y to 14.7 million contracts, also a record, on the back of a broadening participant base.
Forward freight derivatives volume climbed 17% m-o-m in March to 263,452 contracts, while the quarterly tally gained 15% y-o-y.
CNH futures lead record FX gains
On SGX FX, total futures traded volume rose 20% m-o-m in March to a record-high 4.3 million contracts on heightened portfolio risk management.
This brought total volume for 1Q2024 to 12.1 million contracts, up 30% y-o-y.
Gains were led by SGX USD/CNH FX Futures, as volume climbed 36% m-o-m in March to 2.6 million contracts, lifting total volume for the quarter by 47% y-o-y.
In March, the world’s most widely traded international renminbi futures contract registered record open interest of US$18.5 billion.
SGX INR/USD FX Futures volume increased 3% m-o-m in March to 1.4 million contracts, while the quarterly tally was up 4% y-o-y.
As at 1.21pm, shares in the Singapore Exchange are trading 5 cents lower, or 0.65% down, at $9.12.
