Total securities market turnover up 9% m-o-m to S$21.6b in October: SGX

MARKET activity amongst Asian equities in October was marked broadly by a return of risk appetite, amid signs of progress in US-China trade negotiations, and easing uncertainties over Brexit, a latest report by the Singapore Exchange (SGX) said. 

Total securities market turnover value on SGX rose to S$21.6 billion in October, rebounding by 9 per cent month-on-month (m-o-m). 

Securities daily average value also climbed, by 4 per cent m-o-m to S$980 million, while market turnover value for exchange-traded funds (ETFs) surged 55 per cent to S$236 million from the previous month.

"With a tentative agreement for a 'first phase' trade deal between Beijing and Washington, and the resumption of trading following a week-long national holiday in China, investors showed renewed appetite for regional stocks," the Singapore bourse said. 

On a year-on-year (y-o-y) basis however, total securities market turnover value in October was 11 per cent lower versus S$24.3 billion last year, while securities daily average value fell 7 per cent from S$1.1 billion a year ago. 

Meanwhile, the benchmark Straits Times Index (STI) was up 4 per cent in October, tracking increases in Japan and Taiwan indices, and taking its 10-month total return to 9 per cent. Keppel Corp, Sembcorp Industries, CDL Hospitality Trusts, Jardine Cycle & Carriage, and Genting Singapore were among the top gainers for the month, SGX noted. 

Amid active cash equities markets, risk management activity among SGX's equity derivatives was mixed. 

Total equity-index futures traded volume on SGX declined 14 per cent m-o-m to 12.2 million contracts in October, with volume for the Nikkei 225 Index Futures sliding 14 per cent m-o-m. Nonetheless, MSCI Singapore and MSCI Taiwan Index Futures remained strong performers, climbing 15 per cent and 12 per cent m-o-m respectively.

During the month, Lendlease Global Commercial Reit raised S$740.3 million in its IPO (initial public offering), while secondary equity fundraising activity on SGX amounted to S$1 billion.

Year to date through October, primary fundraising on the exchange topped S$3.1 billion - up 50 per cent from the whole of last year - while secondary fundraising reached S$6.4 billion, surpassing last year's tally by 5 per cent.

In addition, SGX remained a leading platform for sustainability and green bonds listings, with CIMB Bank Berhad issuing a US$680 million sustainable development goals bond, and Shinhan Bank issuing a 500 million-euro (S$751 million) green bond in October. 

Separately, as the US Federal Reserve signalled that further interest rate cuts were unlikely this year, the US dollar fell against emerging market currencies, amid reduced volatility in foreign exchange (FX) markets, the market operator said.  

SGX USD/CNH Futures increased 43 per cent y-o-y to 634,737 contracts in October, leading total FX futures on the exchange up 11 per cent to 1.85 million contracts from a year ago.

On the commodities front, iron ore derivatives volume gained 6 per cent y-o-y to 1.27 million contracts in October, lifting total commodity derivatives volume up 1 per cent y-o-y at 1.49 million contracts.

Notably, October was a record month for SGX's pioneering high-grade iron ore contracts with almost 4 million metric tonnes changing hands, amid broadening demand from physical and financial investors, SGX said. Forward freight derivatives volume also jumped 11 per cent m-o-m to 77,227 contracts in October.