- Derivatives volume rises on robust trading activity in FX and commodities

- Singapore stock market caps April-June quarter on strong note

Singapore Exchange (SGX Group) today released its market statistics for June 2024. Global market participants continued to turn to SGX Group as their risk-management venue of choice, with robust trading activity in foreign exchange (FX) and commodity derivatives during the month. Singapore’s cash equities market outperformed most regional peers for the April-to-June quarter.

Key highlights:

Risk-management venue of choice for global investors: Total derivatives traded volume increased 5% year-on-year (y-o-y) in June to 22.4 million contracts, with derivatives daily average volume (DAV) up 13% y-o-y at 1.2 million contracts. For the July 2023 to June 2024 financial year (FY2024), derivatives volume and DAV each gained 8% y-o-y from FY2023.

Record hedging in key emerging-market Asia currencies: FX futures traded volume climbed 35% y-o-y in June to 4.5 million contracts as market participants hedged amid shifting expectations for interest-rate cuts, lifting FY2024 volume by 34% y-o-y. Two of the top 10 most-traded listed futures globally – SGX USD/CNH FX Futures and SGX INR/USD FX Futures – achieved single-day open interest (OI) records of 219,005 lots on 13 June and 297,086 lots on 25 June, respectively. SGX KRW/USD FX Futures also set new OI records for both mini and full-sized contracts during the month.

Broad-based gains in commodities trading activity: Commodity derivatives traded volume rose 30% y-o-y in June to 5.1 million contracts, led by benchmark iron ore derivatives and SGX SICOM rubber futures. Dairy derivatives marked a single-day OI record of 169,908 contracts on 18 June. For FY2024, commodity derivatives volume increased 50% y-o-y to 61.5 million contracts, with forward freight derivatives volume up 23% y-o-y, SGX SICOM rubber futures volume gaining 62% y-o-y and petrochemicals volume more than doubling y-o-y.

Growing participation one year into GIFT Connect: GIFT Nifty 50 Futures DAV and month-end OI climbed to a record US$5.1 billion and US$11 billion, respectively. Nifty 50 Options DAV reached US$222 million – quadrupling since the start of full-scale operation of the NSE IX-SGX GIFT Connect in July 2023.

Cash equities market caps strong quarter: Securities daily average value (SDAV) rose to S$1.2 billion for the April-to-June 2024 period, up 7% quarter-on-quarter (q-o-q). Singapore was the second most-actively traded market in Southeast Asia during the quarter, as the bellwether Straits Times Index (STI) advanced 3.4% q-o-q to 3,332.8. For FY2024, reinvested dividends boosted the STI’s total return to 9%.

Growth across securities products: The market turnover value of exchange-traded funds (ETF) increased 23% y-o-y in June to S$272 million. Turnover of fixed income ETFs gained 59% y-o-y, largely contributed by increased trading in the iShares Asia USD High Yield Bond ETF. For FY2024, real-estate investment trusts (REIT) achieved the highest SDAV growth across asset classes with S$580 million traded, up 76% y-o-y.

SGX Securities technology cluster grows: Serial Achieva Limited joined a vibrant ecosystem of more than 200 Catalist-listed companies during the month. The company distributes and resells a broad range of consumer and enterprise IT products and computer peripherals.

More bond listings: On SGX Fixed Income, bond-listing highlights in June include the Government of Singapore’s S$2.5 billion 30-year Green SGS (Infrastructure) bonds, US$925 million convertible notes by Australian software firm Xero Investments Ltd. and the inaugural US$700 million dual-tranche bonds by PT Krakatau Posco. For FY2024, there were 1,015 listings, up 11% y-o-y, with the total issued amount gaining 22% y-o-y to S$296.3 billion.

The full market statistics report can be found here. https://bit.ly/3RUQOxG