Steady trading across asset classes as SGX securities turnover rises 6% in April

[SINGAPORE] The Singapore Exchange (SGX) posted steady trading activity in April, driven by strong retail participation in small and mid-cap stocks, as well as growing open interest in key derivatives across multiple asset classes. 

This follows what SGX described as a “robust” performance in March.

The total securities market turnover value on SGX rose 6 per cent year on year to S$43.2 billion in April, the bourse’s monthly market statistics report released on Wednesday (May 13) indicated. 

Securities daily average value (SDAV) also climbed 6 per cent over the same period to S$2.1 billion.

Derivatives traded volume gained 1 per cent year on year to 30.2 million contracts, with derivatives daily average volume (DAV) edging up to about 1.5 million contracts.

Trading momentum in the equities market was led by small and mid-cap counters, with SDAV for the segment rising 8 per cent month on month. 

The segment accounted for its highest share of cash equities turnover since July 2021, supported by a 20 per cent increase in retail turnover.

Institutional investors continued to net purchase small and mid-cap stocks for the fourth consecutive month, adding S$158 million in April and bringing the 12-month total to S$700 million.

The bellwether Straits Times Index (STI) rose 0.6 per cent month on month to 4,912.69, while the iEdge Singapore Next 50 Index gained 6.1 per cent over the same period.

Continued interest in ETFs

Exchange-traded funds (ETFs) continued to attract inflows, with total assets under management surpassing S$20 billion at the end of April – up five per cent month on month and 45 per cent from the previous year.

Within this segment, the SPDR Straits Times Index ETF surpassed S$3 billion in assets under management after recording S$79 million in monthly inflows, making it the largest equity ETF in Singapore. 

Gold ETFs also remained resilient, posting their 23rd consecutive month of gains, with inflows of S$174 million in April.

Following heightened global uncertainty in the previous month, April saw a sustained recovery in open interest for the SGX FTSE China A50 Index Futures. 

Open interest increased to 911,612 lots, representing US$14.2 billion in notional value, up 11 per cent month on month, while DAV remained resilient at 431,811 lots, or about US$6.6 billion.

SGX said this “reinforces the contract’s relevance for portfolio risk management during periods of heightened volatility”.

FX futures see strong momentum

Strong momentum in foreign exchange (FX) futures continued in April, as market participants continued to lean on SGX derivatives to hedge amid elevated FX volatility, sustaining momentum in listed FX futures following the records of March.

In commodities, steady trading activity supported continued growth in open interest, which reached 4.1 million lots year to date – up 30 per cent compared with the same period last year.

SGX said hedging of geopolitical uncertainties and disruptions in the global commodity supply chain remained a key focus.

Capital market activity also picked up during the month. , Singapore’s largest sports events management company, was listed on the Catalist board on Apr 23.

In the same month, three Catalist companies – Aspial Lifestyle, Choo Chiang Holdings, and MoneyMax Financial Services – announced plans to transfer to the mainboard in May. Secondary placements raised S$1.75 billion in April, doubling the year-to-date total to S$3.13 billion.