SGX securities turnover value up 5% in December despite lower market volume
Total trading volume of derivatives for the month is 10% higher on the year, at 23.2 million contracts
THE total securities market turnover value on the Singapore Exchange (SGX) climbed 5 per cent on the year to about S$20 billion in December, as the Straits Times Index notched its strongest showing in more than a decade.
December’s total market volume, however, fell 15 per cent to 19.4 billion shares, from 22.7 billion shares clocked for the corresponding month in 2023, the bourse operator’s monthly market statistics report showed.
SGX said that the benchmark Straits Times Index (STI) recorded a 17-year peak in December, and rose 1.3 per cent to 3,787.6. It closed the year up 16.9 per cent as Asean’s top performer – its best performance in more than a decade.
“In the cash market, retail participation grew to a two-year high, with continued net buying in real estate investment trusts for a fourth consecutive month amid expectations that interest rates will stay elevated,” said SGX.
December’s securities daily average value stood flat year on year (yoy) at S$954 million, although the securities daily average volume was down by 19 per cent at 922 million shares.
The STI’s standout showing comes after years of a stagnant Singapore market with low liquidity. Even in 2024, the SGX had more delistings than initial public offerings.
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The Monetary Authority of Singapore has set up an equities market review group in a bid to revive the local market. It is studying ideas to encourage listings, increase investor participation, and to improve the listing process, among others. This group aims to complete its report by August.
The total trading volume of derivatives for December rose 10 per cent on the year to 23.2 million contracts; for the year, trading volume advanced 18 per cent to an all-time high of 298.4 million contracts.
SGX said: “As the US Federal Reserve cut interest rates and China’s policymakers introduced new stimulus measures, more global investors accessed opportunities across equities, foreign exchange and commodities on SGX Group, driving record volume for key derivative contracts.”
The total equities index futures trade volume, including contracts covering key markets such as India, Japan and Singapore, advanced 4 per cent yoy in December to 13 million contracts. For 2024, it grew 8 per cent to 167.8 million contracts.
Notably, the FTSE China A50 Index Futures’ trade volume climbed 14 per cent yoy to 8.5 million contracts in December, translating to a 17 per cent increase to 103.2 million contracts for 2024 – the highest since its launch in September 2006.
“More global institutions are relying on this derivative, the world’s most liquid international futures for Chinese equities, to manage their exposure to the second-biggest economy, following stimulus pledges over the fourth quarter,” said SGX.
The FTSE Taiwan Index Futures’ volume rose 11 per cent for 2024 to 18.6 million contracts, as investments in artificial intelligence boosted Taiwan’s equities market, which is heavily dependent on technology and semiconductor industries.
The total commodities traded volume rose 31 per cent in 2024. This was driven by record annual volumes in benchmark iron ore, SGX Sicom rubber and petrochemicals.
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