SGX securities turnover up 18% in August on portfolio rebalancing, vaccine hopes

THE Singapore Exchange (SGX) on Friday said the cash equity market became more active in August due to portfolio repositioning after the release of half-year financial results, buoyant US technology stocks as well as hopes for a viable Covid-19 vaccine.

The total securities market turnover for the month rose 18 per cent year on year to S$28.15 billion, with the securities daily average value also up 18 per cent, to S$1.41 billion, the bourse operator said in its monthly market-statistics report.

SGX said interest in exchange traded funds (ETFs) remained strong, particularly for the SPDR Gold Shares and Straits Times Index ETFs. ETF turnover last month climbed 87 per cent from a year ago to S$432 million, while assets under management of SGX-listed ETFs grew 20 per cent to S$6 billion.

The bourse operator also noted that it had on Aug 24 launched Asia's first international real estate investment trust (Reit) futures. The two contracts - the SGX FTSE EPRA Nareit Asia ex-Japan Index Futures and the SGX iEdge S-Reit Leaders Index Futures - debuted together with six SGX FTSE Net Total Return (NTR) Index Futures. The US Commodity Futures Trading Commission has certified the two Reit futures and four of the NTR Index Futures contracts for sale to US-based clients, SGX said.

Bond listings in August declined 42 per cent - from a high base a year ago - to 53 listings, raising S$21.85 billion in total.

Meanwhile, trading in equity index futures eased during the month, as the volatility of underlying Asian markets returned to more normal levels, SGX said. Volumes of equity index futures declined 11 per cent year on year to 14.9 million contracts.

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The FTSE China A50 index futures traded 4 per cent fewer contracts than in the year before, while the Nifty 50 Index futures saw an 8 per cent decrease.

Meanwhile, the new SGX FTSE Taiwan Index futures volume tripled month on month to 352,438 contracts, while the daily average turnover doubled as participation increased by more than half to over 90 trading entities.

The bourse operator added that commodities saw a 10 per cent month-on-month gain in volume amid China's reopening and hedging activity.

Iron ore derivatives' volumes rose 13 per cent from July as iron ore futures prices flirted with a multi-year high, while trading of rubber futures was up 19 per cent month on month due to a pickup in auto demand on China's continued economic recovery, SGX said.

SGX shares were trading flat at S$8.52 as at 3.25pm on Friday, after the announcement.