SGX reports heightened volatility in March market statistics

Singapore Exchange (SGX) published its market statistics for March 2020. The global market provider was continuously battered by the heightened volatility brought by the Covid-19 pandemic. Across asset classes – from equities to foreign exchange (FX) to commodities, investors actively managed their positions on the exchange.

During March Straits Times Index (STI) fell by 17.6% to 2,481.23. The STI’s 30-day volatility jumped to 51.7% on 31 March – the highest level since December 2008, matching regional markets, but lower than the US and European markets.

SGX announces trading volumes

Securities Market

Due to the high volatility, the total securities market turnover value spiked higher by 124% YoY with S$48.2 billion and securities daily average value (SDAV) rose to S$2.2 billion with 114% YoY.

SGX’s leveraged products segment drew steady interest from traders in search of short-term opportunities. The volumes of structured warrants and daily leverage certificates (DLC) reached S$1.1 billion., up by 76% YoY. Total equity and debt fundraising on SGX was S$11 billion during March.

Risk Management

Almost a quarter of futures contracts traded on SGX changed hands during the US and European time zones, showing demand for continuous price formation and round-the-clock risk management.

Total derivatives traded volume grew by 41% YoY to 33 million contracts. Equity index futures volume rose by 35% YoY to 25.2 million contracts, of which Nikkei 225 Index Futures climbed 138% YoY and MSCI India Net Total Return (NTR) Futures by 110%.

FX futures volumes grew by 58% YoY to 3 million contracts. SGX USD/CNH Futures traded volume were almost double with 1.3 million contracts and month-end open interest rose to 54% YoY to US$5.4 billion. SGX INR/USD Futures traded volume climbed 37% YoY to 1.6 million contracts as the Indian rupee dropped to historic lows.

Uncertainty in the supply -chain has driven more physical traders to the derivatives market. During last month, total commodities derivatives volume climbed 76% YoY to 3.1 million contracts, with the exchange’s bellwether iron ore futures volume at 2.7 million contracts, up 79% YoY. Petrochemicals volume rose to 136% YoY while the oil market was still battered by heightened volatility.

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