SGX securities turnover value jumps 75% in September; volume up 5%

TOTAL securities market turnover value on the Singapore Exchange (SGX) increased 75 per cent year on year (yoy) to S$30.38 billion in September, according to the bourse’s monthly market statistics report released on Wednesday (Oct 9).

This is a 5.6 per cent increase from August’s S$28.76 billion.

Total market turnover volume inched up 5 per cent yoy, and 9.6 per cent month on month, to 25.63 billion shares in September.

Notably, securities daily average value surged 67 per cent yoy to S$1.45 billion, from S$867 million in September last year.

During the month, Singapore’s stock market was also the second-most actively traded in the region, said the exchange.

The benchmark Straits Times Index advanced 4.1 per cent month on month in September to 3,585.29, outperforming most peers in the Asean region.

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The growth in securities trading activity comes amid easing monetary policies and China’s stimulus package, which fuelled optimism and portfolio repositioning, SGX noted.

Derivatives traded volume climbed 34 per cent yoy in September to 28.9 million contracts, while derivatives daily average volume rose 35 per cent on the year to 1.5 million contracts – the highest in 4.5 years.

SGX said growth in derivatives activity was across asset classes. This includes equity index futures volume which was up 37 per cent on the year, foreign exchange (forex) futures which gained 35 per cent, as well as commodity derivatives volume which rose 29 per cent.

Open interest in SGX’s FTSE A50 Index Futures climbed to a new high of 1.2 million contracts. This comes as the bourse is the preferred venue for managing China exposures, said SGX.

On the forex front, daily average volume of SGX USD/CNH FX Futures rose to a notional high of US$17.4 billion in September. This was up 12 per cent from the previous record in August.

Total FX futures volume increased 35 per cent on the year to 5.5 million contracts, led by a 55 per cent year-on-year increase in SGX INR/USD FX Futures volume.

Commodity derivatives traded volume rose 29 per cent on the year to a record 6.9 million contracts – buoyed by SGX Sicom rubber, petrochemicals contracts and iron ore amid China’s fiscal stimulus measures.

SGX Sicom rubber derivatives rose to a high of 421,113 lots. Petrochemical derivatives reached a monthly average open interest of 2.6 million tonnes – the highest in three years.

Iron ore derivatives notched a single-day record volume of 597,467 lots at end-September, and a new monthly average open interest high of 3.2 million lots.