SGX securities turnover value up 23% to S$24.3 billion in September

THE total market turnover value of securities on the Singapore bourse rose 23 per cent from the preceding year in September to S$24.3 billion, while the securities daily average value climbed 18 per cent to S$1.11 billion.

Securities average clearing fee for the quarter was 2.74 basis points, an increase from 2.60 basis points a year ago due to a greater spread of participation by different market segments.

Optimism of improving market conditions had fuelled capital market fund raising, said the Singapore Exchange (SGX) in its monthly market statistics report on Monday. The total funds raised from equity and bond listings on SGX rose 63 per cent year-on-year in September to S$40.8 billion - the highest amount since February.

SGX-listed companies continued to tap the equity capital markets with secondary fund raising of S$2.11 billion, twice the amounts last year. Total secondary fund raising for July to September reached S$2.72 billion, up 36 per cent from the same quarter last year.

Meanwhile, the market turnover value of exchange-traded funds (ETFs) surged 114 per cent from the preceding year to S$325 million in September. This brought the total to S$1.2 billion for the third quarter, up 110 per cent from the same period last year.

In the third quarter of 2020, trading in the SPDR STI ETF and Nikko AM STI ETF, the two STI-tracking ETFs on the exchange, jumped 183 per cent year-on-year to S$793 million.

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Uncertainties ahead of the US presidential election, on the other hand, boosted risk-management activity across asset classes, SGX noted. Total equity index futures traded volume on SGX climbed 9 per cent year-on-year in September to 15.4 million contracts. This included an 18 per cent gain in SGX FTSE China A50 Index Futures to 7.8 million, a 16 per cent increase in SGX Nifty 50 Index Futures to 2.3 million and a 30 per cent rise in SGX MSCI Singapore Index Futures to one million.

For the third quarter, equity index futures volume was about 12 per cent higher than the preceding year at 49.7 million contracts.

Overall, the volume of derivatives traded on SGX rose 5 per cent year-on-year in September to 20.4 million contracts. For July to September, the total of 63.9 million was up 3.3 per cent from the same period last year.

Average fee per contract for equity, currency and commodity derivatives for the quarter was S$1.22, up from S$1.15 a year ago. This was mainly due to an increase in proportion of volume from better-yielding derivatives products.

Traded volume in SGX commodity derivatives rose 18 per cent year-on-year in September to 2.1 million contracts. SGX's bellwether iron ore derivatives climbed 18 per cent year-on-year to 1.8 million, while forward freight agreements (FFA) gained 20 per cent year-on-year to 83,402 contracts.

Reflecting a strong recovery in consumption, traded volume in petrochemical derivatives jumped threefold year-on-year in September to 4,148 contracts. SGX SICOM rubber futures, the global pricing benchmark for natural rubber, increased 3 per cent year-on-year to a five-month high of 136,381 contracts.

SGX closed three Singapore cents or 0.33 per cent higher at S$9.10 on Monday.