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ETF, securities turnover climb in May amid optimism over economic stimulus: SGX

OPTIMISM over economic stimulus, as more countries emerge from Covid-19 lockdowns, partly drove increases in market turnover value for exchange-traded funds (ETFs) and securities in May.

The reopening of economies around the world also lifted sentiment in equity markets, even as the pandemic continues to cloud global growth outlook, said the Singapore Exchange (SGX) in its latest monthly market statistics report.

The market turnover value for ETFs in May surged 73 per cent year on year to S$302 million, as the SPDR Straits Times Index ETF traded nearly three times higher year on year at S$88 million, on the back of S$57 million in net inflows during the month.

Total securities market turnover value rose 17 per cent year on year to S$27.2 billion, while securities' daily average value on the bourse climbed 37 per cent year on year to S$1.51 billion.

With calmer Asian equity markets, SGX said institutional investors sought to reposition their portfolios to capture potential growth opportunities. 

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In May, SGX FTSE China A50 Index Futures traded volume saw a 2 per cent uptick month on month to 6.11 million contracts, while SGX Nifty 50 Index Futures was up 3 per cent month on month to two million contracts.

SGX's derivatives franchise saw gains amid increased portfolio demand in foreign exchange and commodities. US-China geopolitical tensions drove risk management in currencies during the month.

Total FX futures traded volume on SGX rose 17 per cent month on month to two million contracts. SGX USD/CNH futures traded volume increased 7 per cent month on month to 724,127 contracts, with month-end open interest rising 16 per cent month on month.

Commodities volume on the Singapore bourse rebounded 25 per cent month on month in May to 2.16 million contracts, bolstered by a 30 per cent rise in SGX's benchmark iron ore derivatives to 1.93 million contracts.

SGX said its long-term efforts to grow the iron ore ecosystem are sustaining interest from financial participants, with more funds and asset managers interacting with physical-market participants.

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