SGX securities turnover value up 11.5% to S$30.27b in May

TOTAL market turnover value on the Singapore Exchange (SGX) reached S$30.27 billion in May, an 11.5 per cent increase from S$27.15 billion in the year-ago period. This represented a 12.2 per cent increase from S$26.99 billion in April.

Optimism of a sustained economic recovery from the global health crisis bolstered derivatives demand, while cash equities were actively traded even as inflation concerns moderated gains, SGX said in its monthly market statics report on Friday.

Securities daily average value (SDAV) also climbed, up 5.6 per cent on the year to S$1.59 billion. It jumped 24 per cent from the previous month, where SDAV was S$1.29 billion.

SGX noted that the benchmark Straits Times Index (STI) continued to outpace the FTSE All World Index on a year-to-date basis, generating a total return of more than 13 per cent. However, it ended its six-month streak of gains, sliding 1.7 per cent for the month to 3,164.28.

In May, Sri Trang Gloves (Thailand), one of the world's largest glove manufacturers, joined the SGX mainboard in a secondary listing.

SGX-listed companies continued to tap the equity capital markets with secondary funds raised of S$527 million, the exchange said. The amount issued from 59 bond listings on the exchange increased 45 per cent on year to S$24.1 billion.

Exchange-traded funds rose 27.8 per cent in market turnover value year on year (y-o-y) to S$386 million in May. Month on month (m-o-m), the increase was 21.8 per cent.

Derivatives traded volume on SGX rose 6 per cent from the previous year to 18.1 million contracts in May.

Trading volume in the foreign-exchange markets gained 2 per cent y-o-y to two million contracts in May. SGX said that China's economic rebound buoyed institutional demand to risk-manage the yuan, with SGX USD/CNH Futures climbing 20 per cent y-o-y to 869,101 contracts.

Month-end open interest in the contract, the world's most widely traded international yuan futures, jumped almost 32 per cent y-o-y to US$9.6 billion, it added.

SGX USD/SGD (Full-Sized) Futures set a new monthly cumulative T-session volume record of 29,959 contracts or US$3 billion.

The Indian rupee also saw a boost in performance this month, with month-end open interest in SGX INR/USD Futures reaching US$1.9 billion, a gain of 107 per cent m-o-m and 3.9 per cent y-o-y, following a recovery in the Indian stock market.

After the successful launch of the USD/INR (USD) Futures in November 2020, SGX introduced its USD/INR (USD) Option contract in May. Both contracts are designed to meet the needs of over-the-counter institutional participants.

Total commodity volume on SGX increased 8 per cent m-o-m to 2.3 million contracts in May, as elevated price volatility spurred hedging demand, the bourse said. Record iron ore prices and volatile steel mill margins drove strong risk-management activity.

Forward freight agreement volume on SGX surged 112 per cent from last year to 147,717 contracts, as demand for freight derivatives continued to be underpinned by supply-chain tightness across dry-bulk markets.

Shares of SGX closed at S$10.55 on Friday, up 1.15 per cent.