SGX securities turnover value rises 23% to S$23 billion in May

TOTAL securities turnover value on the Singapore Exchange : S68 0% (SGX) rose 23 per cent on the month to reach S$23 billion in May from S$18.6 million the previous month.

On Tuesday (Jun 13), SGX noted that activity in the commodities and equities markets was “buoyant” versus April levels, while total derivatives traded volume in May rose 16 per cent month on month to 20.5 million contracts from 17.7 million earlier.

Commodity derivatives volumes registered a 13 per cent rise from April to 3.8 million contracts amid growing demand for risk management.

This was supported by a 9 per cent month-on-month increase in iron ore derivatives traded volumes to over 3.2 million contracts in May – bringing the iron ore daily average volume on-screen to a new record as the raw material gains prominence as a “proxy for industrialising Asia”, said SGX. 

China’s reopening also led to increased activity from market participants, as evident in a 20 per cent month-on-month surge in the volume of SGX Sicom rubber futures.

Over on SGX FX, the total traded volume of forex futures grew 20 per cent on the month to reach 2.9 million contracts.

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This was mainly driven by a 19 per cent rise in volumes for SGX USD/CNH Futures to 1.8 million contracts as economic data and monetary policy decisions led to increased hedging activities, said the bourse.

Within the equity derivatives market, the total traded equity index futures volume rose 16 per cent to 13.3 million contracts, against the backdrop of elevated risk management and trading activities.

The number of trading days was also higher in May, standing at 22 as opposed to 19 in April.

Despite broad-based activity across equity index futures, the performances of Asian equity markets were split in May. Japan and Taiwan equities were boosted by improving investor sentiment towards the semiconductor sector, whereas China’s equities market declined.

Overall, the securities daily average value was up 7 per cent from April to S$1 billion, with technology remaining the strongest sector in both global and Asia-Pacific stock markets so far this year.

Lion-OCBC Securities Hang Seng TECH ETF was the most traded Singapore-listed ETF in May.

SGX also noted that CapitaLand Ascendas Reit’s recent placement of new units to fund its acquisitions has helped to drive the raising of secondary funds up by 14 per cent month on month.