Market turnover value of securities jumped 74% to S$38b in June: SGX

THE total market turnover value of securities on the Singapore bourse rose 74 per cent on the year last month to S$38 billion, while the securities daily average value (SDAV) climbed 50 per cent to S$1.73 billion, as markets reflected optimism from the reopening of major economies.

Meanwhile, the market turnover value of exchange-traded funds (ETFs) surged to S$487 million last month, up 138 per cent from the preceding year, the Singapore Exchange (SGX) said in its monthly market statistics report on Wednesday.

This was partly driven by the SPDR Straits Times Index (STI) ETF, which in June traded at S$210 million, 10 times higher from the year-ago period. Its fund size had also crossed the S$1 billion mark last month, said SGX.

The benchmark Straits Times Index (STI) gained 3.2 per cent in June to 2,589.91.

SGX also noted that Asian primary bond markets continued to gain momentum in June, as issuers from Asia broadly increased their fund-raising activities; the value of new bond listings rose 43 per cent from the previous month at about US$23.8 billion.

The traded volume of equity index futures on the SGX rose 20 per cent from a month ago to 14.5 million contracts in June, the highest in three months. This was led by a 54-per-cent increase in the traded volume of the Nikkei 225 Index Futures to 2.23 million contracts. 

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The MSCI Singapore Index Futures climbed 14 per cent, while FTSE China A50 and Nifty 50 index futures each increased 12 per cent from a month ago.

As for foreign exchange (FX) futures, steady institutional demand to manage risk continued to drive growth.

The total volume of FX futures traded on the exchange rose 10 per cent month-on-month to 2.19 million contracts in June, the highest in three months.

SGX's USD/CNH (US dollar and offshore Chinese yuan) futures traded volume rose 18 per cent to 851,753 contracts, while the exchange's INR/USD (Indian rupee and US dollar) futures saw their total traded volume climb 3 per cent to 1.28 million contracts.

In commodities, increased demand from economic recovery and ongoing physical supply dislocations related to Covid-19 drove participation in derivative trading. 

The Singapore Commodity Exchange rubber futures, the world's pricing bellwether for natural rubber, increased 7 per cent on the month to 129,420 contracts. Its high-grade iron-ore futures rose to a record monthly trading volume of 55,960 contracts, with overall open interest in iron-ore contracts climbing 6 per cent  in June to an average of 1.84 million contracts.

Forward freight derivatives traded volume on SGX surged 83 per cent month-on-month to a record high of 127,773 contracts, on the back of a recovering dry-bulk freight market, in particular for the Capesize vessels driven by iron-ore trade flows, said SGX.

"The exchange offers capital efficiencies to market participants across the steel value chain through its freight, iron ore and coal derivatives," it added.

In June, the exchange announced its acquisition of the remaining 80 per cent stake in cloud-based FX trading platform BidFX, which it said would expand its reach into the global over-the-counter (OTC) market. The exchange also aims to bring together FX futures with OTC markets.

During the month, it also welcomed Southern Alliance Mining, an established producer of high-grade iron-ore products in Malaysia, to Catalist. 

SGX said it had in June launched 10 Singapore Single Stock Futures (SSFs) to meet growing demand for a broader suite of Singapore-linked equity products. 

Additionally, it announced plans to introduce SGX FTSE Taiwan Index futures in July, to enable global investors to gain exposure to a broad representation of large and mid-capitalisation Taiwan stocks, while meeting fund managers' diversification objectives.

Shares of SGX edged up S$0.050 or 0.61 per cent to close at S$8.260 on Wednesday, before the report was released.