Equity index futures traded volume for April on SGX drops by half MoM 

Singapore Exchange (SGX) published its market statistics for April 2020. The global market provider reported stabilising global equities numbers. Demand for currency risk management continued to grow, while global supply chains disruptions went on to drive trading in commodity derivatives.

Total securities market turnover value on the exchange reached S$29.6 billion, a 38.6% MoM decline compared to S$48.2 billion last month and securities daily average value (SDAV) dropped by 36% to S$1.41 billion from S$2.2 billion in March. The market turnover value of exchange-traded funds (ETF) reached S$469 million supported by strong investment interest and capital inflow to Asia.

Equity index futures traded volume on SGX halved during April to 12.3 million contracts, compared to March when it rose to 25.2 million. China became the first major economy to exit the Covid-19 lockdown in April. The country announced a contraction in its gross domestic product for the first quarter of the year, but the gradual reopening of the economy and anticipation for more economic stimulus eased portfolio-hedging activity.
SGX Nifty 50 Index Futures traded volume grew 24% YoY in April to 1.94 million contracts, while SGX Nikkei 225 Index Futures rose 18% YoY to 1.79 million contracts.

SGX announces trading volumes

Financial services conglomerate AMTD International Inc., joined the SGX Mainboard in April, becoming the first company with dual listing in New York and Singapore. The total debt fundraising on SGX amounted to S$18.3 billion.

Demand for currency risk management steadily increased on the exchange. The total FX futures volumes reached 1.71 million contracts, almost halving the numbers from March when it was 3 million. SGX USD/CNH Futures traded volume dropped 47.7% MoM to 79,239 contracts, while month-end open interest ROSE 16% MoM to US$6.27 billion. SGX INR/USD Futures traded volume dropped almost 39% MoM to 980,379 contracts.

In commodities, physical market disruptions went on driving the demand for risk-management solutions even as trading volumes came down off the highs of March. Total commodity derivatives volume on SGX slid by 44% MoM to 1.73 million contracts, with the exchange’s bellwether iron ore futures volume at 1.48 million contracts, down by 45% MoM. SICOM rubber futures reached 149,963 contracts.

In April, West Texas Intermediate crude futures prices fell below zero for the first time in history, causing volatility across the energy complex and petrochemical markets. Petrochemicals volume on the exchange reached 2,492 contracts, up 8% YoY. Open interest in paraxylene and benzene derivatives, as well as coking coal futures and freight options, jumped to record highs, showing a definitive demand for price risk management.

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