- Record volume in derivatives market
- STI is world’s strongest performing developed-market benchmark
Singapore Exchange (SGX Group) today released its market statistics for April 2022. Derivatives trading volume rose to a record amid macro uncertainties, while the continuing Russia-Ukraine conflict drove hedging activity in freight.
Derivatives daily average volume (DAV) rose 25% year-on-year (y-o-y) to 1.1 million contracts in April, reaching an all-time high of almost 3 million contracts on 26 April. Total traded volume for the month gained 19% y-o-y to 20.8 million contracts. Equity index futures volume climbed 23% y-o-y to 15.1 million contracts, while FX futures volume increased 27% y-o-y to 2.8 million contracts – the highest since March 2021.
SGX Group’s unique multi-asset offering enabled global institutional investors to manage their portfolio risk amid divergent views over the pace of growth in China and India, two of Asia’s largest economies. The traded volume of SGX FTSE China A50 Index futures – the world’s most liquid international contract for Chinese equities – gained 37% y-o-y in April to 9.1 million contracts, SGX USD/CNH Futures volume rose 58% y-o-y to 1.2 million contracts, while iron ore volume climbed 3% y-o-y to 1.8 million contracts. SGX Nifty 50 Index futures traded volume increased 14% y-o-y to 2.4 million contracts, while SGX INR/USD Futures volume were up 9% y-o-y at 1.5 million contracts.
Commodity derivatives traded volume stood at 2.1 million contracts in April, easing as market volatility normalised from recent months. Shipping derivatives remained a standout as continued uncertainty over the crisis in Ukraine stoked hedging activity, with record-high open interest in forward freight agreement (FFA) options. The pioneering SGX-NZX dairy derivatives suite also gained traction, with both traded volume and open interest notching new highs during the month.
STI: World’s Strongest Performing Developed-Market Benchmark
Securities daily average value (SDAV) slid 1% y-o-y in April to S$1.3 billion, as the benchmark Straits Times Index (STI) declined 1.5% to 3,356.9. Over the first four months of the year, the STI was the strongest performing developed-market benchmark globally, generating a 7.5% gain, with dividends boosting the total return to 8.7%. This was a significant outperformance to the FTSE Asia Pacific Index and FTSE All-World Index. From January to April, Singapore stocks received close to S$420 million of net institutional inflows, mainly into Telecommunications, Industrials and Consumer Non-Cyclicals.
The market turnover value of structured warrants and daily leverage certificates (DLC) jumped 134% y-o-y in April to S$797 million, while turnover of exchange-traded funds (ETF) rose 43% y-o-y to S$454 million. SGX Securities welcomed the listing of Lion-OCBC Securities Singapore Low Carbon ETF, reflecting growing interest in sustainable investing and low-carbon trading options.
During the month, Yangzijiang Financial Holding Ltd. joined Mainboard. The company is a spinoff of the investment business of SGX-listed Yangzijiang Shipbuilding (Holdings) Ltd., one of the world’s top shipbuilders. Technology provider iWOW Technology Ltd. and logistics services group LHN Logistics Ltd. were listed on Catalist.
The amount issued from 133 new bond listings on SGX Fixed Income, Asia’s leading international bond marketplace, increased 31% y-o-y to S$49.2 billion in April. Highlights included TSMC Arizona Corp.’s US$3.5 billion four-tranche senior notes; PT Freeport Indonesia’s US$3 billion three-tranche senior notes; the Republic of Indonesia’s US$1.75 billion dual-tranche bonds; America Movil’s US$1 billion senior notes due 2032; as well as US$500 million three-year green bonds from Bank of China Ltd., Singapore branch.
The full market statistics report can be found here.
