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.
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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).
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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.
