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SGX market turnover for ETFs drops by 55% MoM in May



Singapore Exchange (SGX) published its market statistics for May 2020. The company reported gains in the exchange’s derivatives franchise amid increased portfolio demand in foreign exchange and commodities.

Securities daily average value (SDAV) on SGX rose 7% MoM to S$1.51 billion, compared to April when it was S$1.41 and total securities market turnover value fell 8% MoM to S$27.2 billion from previous month when it was S$29.6 billion. The market turnover value of exchange-traded funds (ETF) dropped 55% MoM to S$302 million.

The Asian equity markets came down and institutional investors sought to reposition their portfolios to capture potential growth opportunities. SGX FTSE China A50 Index Futures traded volume gained 2% MoM in May to 6.11 million contracts, while SGX Nifty 50 Index Futures increased 3% MoM to 2 million contracts.

The total amount issued from debt securities listings on SGX fell 9% MoM in May to S$16.59 billion. Indonesian bond issuers led by Hutama Karya, Bank Mandiri and Indonesia Asahan Aluminium continued to tap the bond market, while Yageo Corporation from Taiwan also listed its convertible bond.

SGX announces trading volumes

The tension between the US and China rose during May, driving risk management in currencies. Total FX futures traded volume on SGX increased 17% MoM in May to 2 million contracts. SGX USD/CNH futures traded volume gained 7% MoM to 724,127 contracts, with month-end open interest 16% higher MoM.

Continued uncertainty with India extending its nationwide lockdown spurred hedging in the rupee. SGX INR/USD futures traded volume jumped 26% MoM in May to 1.24 million contracts, as month-end open interest rose 13% MoM.

Commodities volume on SGX climbed 25% MoM in May to 2.16 million contracts, pushed by a 30% MoM increase in the exchange’s benchmark iron ore derivatives to 1.93 million contracts. The exchange’s continuing efforts to grow the iron ore ecosystem is maintaining interest from financial participants, with more funds and asset managers interacting with physical-market.


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SGX market turnover for ETFs drops by 55% MoM in May

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