SGX securities turnover value falls 26.5% in September amid global market decline
Michelle Zhu
TOTAL securities turnover value on the Singapore Exchange (SGX) fell 26.5 per cent in September to S$17.3 billion from S$23.6 billion the prior month, with September’s securities daily average value down 19 per cent on the month to S$867 million.
In its monthly market statistics report released on Friday (Oct 13), SGX posted a 0.5 per cent month-on-month decline in the benchmark Straits Times Index (STI) to 3,217.41 in September, as major global stock markets fell during the month. The global trend was mainly attributed to downward selling pressures amid a risk-off mood from central bank meetings.
Total securities market turnover volume fell 16.2 per cent to 24.4 billion shares in September, from 29.2 billion a month ago.
Total derivatives volume for the month stood at 21.5 million, down 9.1 per cent from 23.7 million the previous month. It also represents a 3.5 per cent decline from the same period a year ago.
SGX nonetheless noted a surge in derivative trading activity in foreign exchange and commodities, driven by widening rate differentials and surging oil prices.
This came as global institutional investors leaned on SGX’s multi-asset offering to manage portfolio risk, said the bourse.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Commodities derivatives traded volume for September was up 77 per cent year on year to 5.4 million contracts, which SGX said was a record high.
Gains across the product suite included iron ore and freight derivatives, petrochemicals, as well as rubber futures.
Notably, benchmark iron ore derivatives volumes jumped 85 per cent year on year in September on the back of record open interest in both futures of options, which SGX attributed to China’s stimulus measures and expanding steel production.
SEE ALSO
Screen trading, where traders put up bids and offers electronically as opposed to over-the-counter trading, made up almost 60 per cent of total futures activity for the month. This represents an extended trend of growing adoption from financial participants, said the bourse.
The total traded volume of forex futures gained 20 per cent year on year to 4.1 million contracts, as concerns of prolonged higher US interest rates drove trading activity.
In terms of fixed income securities, the amount issued from 39 new bond listings grew 28 per cent month on month in September to S$22.2 billion.
The latest set of operational statistics for September brings Singapore’s total securities market turnover volume for July to September to 83.2 billion shares, down 8 per cent year on year.
The quarterly market turnover value of structured warrants and daily leverage certificates, however, increased 4 per cent to S$1.9 billion compared with the same quarter a year ago.
Copyright SPH Media. All rights reserved.
