SGX securities turnover slides 7% to S$24.3b in August

TOTAL securities turnover on the Singapore Exchange (SGX) dropped 7 per cent on the year to S$24.3 billion in August, although total market turnover volume edged up 1 per cent to 31.6 billion securities.

Month on month, the total market turnover value was 35 per cent higher, while the total market turnover volume jumped 54.6 per cent from July, according to SGX’s monthly market statistics report released on Monday (Sep 12).

The bourse operator attributed the broad pickup in securities market turnover to corporate earnings season and strong month-end rebalancing.

“Institutional portfolio rotation led to an estimated S$750 million in net institutional inflows in August, the highest since January and mainly into the financials and consumer sectors,” SGX added.

Securities daily average value stood at S$1.1 billion in August, 12 per cent lower year on year but 22.6 per cent higher on the month. This came as securities daily average volume slid 4 per cent year on year to 1.4 billion securities, but rose 40.5 per cent month on month.

The benchmark Straits Times Index rose 5 per cent on the year to 3,221.67, and was 0.3 per cent higher month on month. SGX noted that the index generated a year-to-date price return of 3.1 per cent and outperformed the FTSE All-World Index.

The market turnover value of exchange-traded funds was S$252 million in August, 45 per cent lower year on year and down 25 per cent month on month. Volume dropped 31 per cent on the year to 139 million securities and was down 22.3 per cent on the month.

Increased risk-management activity drove derivatives volumes to reach 20.4 million contracts amid ongoing uncertainty. This was 4 per cent higher than the year-ago period but 0.5 per cent lower month on month. Meanwhile, derivatives daily average volume was up 2 per cent on the year to 921,170 contracts, but 6.6 per cent lower on the month.

Notably, the market turnover value of daily leverage certificates surged 120 per cent on the year to S$351 million in August, and was up 36.6 per cent on the month. This came as volume jumped 97 per cent year on year and 33.4 per cent month on month.

SEE ALSO

SGX securities turnover value slips 28% to S$18b in July

The market turnover value of structured warrants, meanwhile, slipped 44 per cent year on year to S$258 million and was down 3 per cent on the month. Turnover volume was 28 per cent lower on the year but 6.1 per cent higher month on month.

SGX shares were trading 0.7 per cent or S$0.07 higher at S$9.64 as at 2.44 pm on Monday.