- Derivatives DAV hits two-year high on gains across multiple asset classes
- Securities turnover rises as STI becomes Asia-Pacific’s strongest performing stock benchmark
Singapore Exchange (SGX Group) today released its market statistics for March 2022. Gains in derivatives volume drove performance for the first three months of 2022. Securities turnover rose as Singapore’s stock benchmark returned over 9% for the quarter, the strongest in Asia-Pacific.
Derivatives daily average volume (DAV) increased to 1.2 million contracts in March – the highest in two years – as total traded volume climbed 42% month-on-month (m-o-m) to 26.3 million contracts. This lifted derivatives volume for the January-to-March quarter to 64.9 million contracts, up 17% quarter-on-quarter (q-o-q) over the October-to-December period. The average fee per contract for equity, currency and commodity derivatives for the quarter was S$1.55.
Institutional investors continued to benefit from SGX Group’s unrivalled multi-asset offering for managing portfolio risk in key Asian markets including China and India. The traded volume of SGX FTSE China A50 Index futures – the most liquid international contract for Chinese equities – jumped 57% m-o-m in March to 11.1 million contracts, bringing the first-quarter tally to 26.8 million, up 17% q-o-q. SGX USD/CNH futures traded volume gained 48% m-o-m in March to 1.2 million contracts, while volume for the quarter was up 9% q-o-q. SGX Nifty 50 Index Futures traded volume rose 2% m-o-m (+18% q-o-q), while SGX INR/USD Futures volume climbed 22% m-o-m (+13% q-o-q).
Total equity index futures traded volume increased 38% m-o-m to 18.4 million contracts in March (+15% q-o-q). There were gains across the board, with SGX Nikkei 225 Index Futures volume up 37% m-o-m (+12% q-o-q), SGX FTSE Taiwan Index Futures volume up 31% m-o-m (+15% q-o-q) and SGX MSCI Singapore Index Futures volume up 10% m-o-m (+5% q-o-q).
Total foreign exchange (FX) futures traded volume climbed 34% m-o-m to 2.8 million contracts in March (+12% q-o-q). The Russia-Ukraine conflict fanned risk aversion, bolstering hedging activity in currency markets. SGX Group offers a leading FX platform and integrated services for global over-the-counter (OTC) and futures participants.
Significant Gains in Commodities
SGX Group’s benchmark commodity derivatives demonstrated close alignment with developments in the macro environment, enabling market participants to express their views and manage risk efficiently – through iron ore as Asia’s strategic raw material and freight as a global barometer.
Total commodity derivatives traded volume rose 66% m-o-m to 4.1 million contracts in March, led by a 78% m-o-m surge in iron ore volume to 3.6 million contracts. Forward freight agreements (FFA) volume increased 10% m-o-m to 217,098 contracts – a record high – as uncertainty over the crisis in Ukraine stoked hedging demand. Month-end open interest in FFAs surpassed 350,000 contracts.
For the January-to-March quarter, iron ore traded volume rose 34% q-o-q to 7.4 million contracts while FFA volume climbed 13% q-o-q to 552,003 contracts. Quarterly gains were also sizable when compared with January-March 2021, which was a period of heightened volatility for global commodities amid COVID-19.
Securities Turnover Grows in March and First Quarter
Securities market turnover value increased 21% m-o-m in March to S$35.7 billion, lifting turnover for January-to-March by 26% q-o-q to S$91 billion. Securities daily average value (SDAV) for the three-month period climbed 32% q-o-q to S$1.46 billion amid a flight to quality and expectations of higher interest rates. The average securities clearing fee for the quarter was 2.54 basis points.
Securitised products saw strong growth on the back of heightened market volatility. The market turnover value of exchange-traded funds (ETF) increased 63% m-o-m in March to S$663 million, bringing the first quarter higher by 24% q-o-q. Turnover of structured warrants and daily leverage certificates (DLC) climbed 147% m-o-m (+96% q-o-q).
The bellwether Straits Times Index (STI) advanced 5.1% in March to 3,408.52. For the first quarter, it was Asia-Pacific’s strongest performing benchmark with a 9.1% price return and a 9.6% total return.
During the month, SGX Group welcomed Oiltek International Ltd. to Catalist. A subsidiary of Mainboard-listed Koh Brothers Eco Engineering Ltd., the company is an integrated process-technology and renewable-energy solutions provider in the vegetable oils industry.
The amount issued from 104 new bond listings on Asia’s leading international bond marketplace stood at S$31.1 billion in March. Highlights included EUR1.5 billion three-year covered bonds by United Overseas Bank Ltd., US$1.5 billion five-year covered bonds by DBS Bank Ltd., US$1.3 billion dual-tranche senior notes by PTT Global Chemical, as well as a US$1 billion dual-tranche senior notes offering including a five-year green tranche by Sumitomo Mitsui Trust Bank Ltd.
The full market statistics report can be found here.
