- Derivatives volume rises amid optimism over China recovery
- Securities daily average value climbs
Singapore Exchange (SGX Group) today released its market statistics for May 2022. Derivatives volume rose amid broad optimism over China’s economic recovery alongside higher volatility in global markets.
Global institutional investors continued to benefit from SGX Group’s unique multi-asset offering to manage portfolio risk, as derivatives traded volume grew 23% year-on-year (y-o-y) in May to 22.3 million contracts. Derivatives daily average volume (DDAV) increased 19% y-o-y. SGX FTSE China A50 Index Futures remained the world’s most liquid international contract for Chinese equities, with volume up 24% y-o-y at 8.6 million contracts. This lifted total equity index futures volume by 21% y-o-y to 15.7 million contracts, with broad-based gains across SGX Nifty 50 Index Futures (up 42% y-o-y), SGX MSCI Singapore Index Futures (up 23% y-o-y) and SGX Nikkei 225 Index Futures (up 4% y-o-y).
Foreign exchange (FX) futures performed strongly on SGX FX, Asia’s leading currencies marketplace, with total traded volume rising 62% y-o-y in May to 3.3 million contracts. This was led by a 77% y-o-y jump in SGX USD/CNH futures to 1.5 million contracts – representing a record-high monthly volume (full-sized and mini) of almost US$155 billion in notional terms. SGX INR/USD futures volume climbed 54% y-o-y to 1.6 million contracts, the highest since March 2021, representing US$41.8 billion in notional terms. SGX TWD/USD futures also hit a monthly record of nearly US$236 million notional traded.
Commodity derivatives volume on SGX Commodities increased on both a y-o-y and month-on-month (m-o-m) basis on the back of improved sentiment over China’s economic outlook. Benchmark iron ore derivatives traded volume gained 16% m-o-m in May to 2.1 million contracts, the highest since December 2021, while petrochemicals volume surged 141% m-o-m to 4,459 contracts. The volume of SGX SICOM rubber futures – the global pricing bellwether for natural rubber – grew 10% m-o-m to 131,068 contracts.
Securities Market Turnover Climbs
Securities daily average value (SDAV) on SGX Securities rose 18% m-o-m in May to S$1.51 billion, while total market turnover value increased 12% m-o-m to S$28.6 billion. The benchmark Straits Times Index (STI) has gained 3.5% year-to-date (YTD), with reinvested dividends boosting the total return to 5.6%.
The market turnover value of exchange-traded funds (ETF) stood at S$353 million in May. The six SGX-listed China equity ETFs recorded a 25th consecutive month of combined net inflows, with S$468 million of net creations since 2020. This included S$104 million of net creations YTD.
During the month, SGX Securities welcomed the secondary listing of NIO Inc., a pioneer and leading company in the premium smart electric vehicle market, to Mainboard. In its first month, NIO recorded the highest trading activity for a Listing by Introduction, with an average daily turnover value of S$2.3 million. 5E Resources Ltd., a scheduled waste management services provider in Malaysia, joined Catalist.
The amount issued from 108 new bond listings on SGX Fixed Income, Asia’s leading international bond marketplace, increased 18% y-o-y to S$28.5 billion in April. Highlights included EUR1.5 billion dual-tranche senior notes by The Export-Import Bank of Korea, with a EUR550 million two-year green tranche; US$1 billion dual-tranche senior notes by ST Engineering Urban Solutions USA Inc.; US$900 million five-year bonds by Japan International Cooperation Agency; and Astrea 7 private equity bonds comprising S$526 million of Class A-1 bonds, US$175 million of Class A-2 bonds and US$200 million of Class B bonds.
The full market statistics report can be found here.
