SGX securities turnover value up 6% in September; derivatives activity at all-time high

TOTAL securities turnover on the Singapore Exchange (SGX) in September gained 6 per cent from the previous month to S$25.8 billion while the total market turnover volume fell to 28.8 billion shares compared to 31.6 billion shares in August. 

Year on year, total securities turnover shed 5 per cent. Total market turnover volume likewise dropped 23 per cent from 37.4 billion shares. 

In SGX's monthly market statistics report released on Tuesday (Oct 11), the bourse operator attributed the rise in securities market turnover value to the strong performance of Straits Times Index (STI) constituent stocks and real estate investment trusts (Reits). 

SGX said that STI's constituent stocks saw over S$300 million in net institutional flows, with the largest inflows to DBS, OCBC Bank and Singtel. Dual-listed liquor company Emperador, which debuted on SGX Securities with a secondary listing in July, was recently included as an STI constituent.

While the benchmark STI declined 2.8 per cent to 3,130.24 in September, overall it has advanced 1 per cent in the year to date - outperforming the FTSE All-World Index. SGX also noted that the STI is also the only developed market gauge to yield positive returns. 

The average securities clearing fee for the July-to-September quarter was 2.58 basis points.

Securities daily average value (SDAV) stood at S$1.2 billion in September, 5 per cent lower year on year but 6 per cent higher on the month. This came as securities average daily volume declined 23 per cent year on year, and 8.8 per cent month on month, to 1.3 billion securities.

Derivatives activity also saw an all-time high in September. Derivatives daily average volume (DDAV) rose 14 per cent month on month in September to 1.05 million contracts, achieving a single-day record of 2.97 million contracts on Sep 27.

The market turnover value of exchange-traded funds (ETFs) gained 25 per cent month on month in September to S$315 million, supported by fixed income and commodity ETFs, while turnover of structured warrants and daily leverage certificates (DLC) was up 7 per cent on-month at S$652 million.

This month also saw the introduction of CSOP CGS-CIMB FTSE Asia Pacific Low Carbon Index ETF, the world's first low-carbon ETF, as an SGX listing. This brought total global assets under management of sustainability-linked ETFs on SGX to more than S$1 billion.

On SGX Fixed Income, Asia's leading international bond marketplace, the amount issued from 100 new bond listings stood at S$26.2 billion in September, or almost S$78 billion for the July-to-September quarter.

SGX also said that September was a record month for foreign exchange (FX) futures. Futures traded volume on SGX FX rose 31 per cent month on month in September to 3.4 million contracts - an all-time high - with total notional traded value in excess of US$205 billion.

Meanwhile, total commodities traded volume climbed 23 per cent year on year in September to three million contracts. Benchmark iron ore derivatives volume rose 24 per cent year on year in September to 2.61 million contracts, while trading velocity also increased for shipping derivatives, with forward freight agreements volume up 9 per cent month on month at 173,931 contracts.

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