- SDAV jumps to one-year high as retail participation grows
- Record derivatives open interest as participants manage increased risk exposure across Asia’s economic landscape
Singapore Exchange (SGX Group) today released its market statistics for May 2024. Open interest (OI) across key equity, foreign exchange (FX) and commodity derivatives rose to record highs as market participants leaned on SGX Group to manage portfolio risk efficiently, amid China’s introduction of fiscal stimulus measures and India’s general elections.
Derivatives traded volume rose 17% year-on-year (y-o-y) in May to 23.9 million contracts, while daily average volume (DDAV) climbed 16% y-o-y to 1.1 million contracts. Securities daily average value (SDAV) increased 22% y-o-y to S$1.3 billion – the highest in a year – as total market turnover value gained 16% y-o-y to S$26.7 billion.
Key highlights:
- Securities turnover grows across all stock segments: SDAV surged amid robust activity around corporate earnings and MSCI’s quarterly rebalancing. The bellwether Straits Times Index (STI) Index advanced 1.3% to 3,336.59, outperforming the FTSE ASEAN All-Share Index. Singapore Depository Receipts drew the largest monthly net inflows from retail investors since inception a year ago, with total retail assets-under-management increasing 23% m-o-m.
- First ETF tracking Asia-Pacific’s financial sector: SGX Securities welcomed the listing of Lion-OCBC Securities APAC Financials Dividend Plus ETF on 13 May. The turnover of Daily Leverage Certificates (DLC) and Structured Warrants gained 16% m-o-m to S$604 million, with the highest retail turnover in these instruments since January 2023.
- Unrivalled liquidity as global participants express views on China: OI in SGX FTSE China A50 Index Futures, the world’s most liquid international futures for Chinese equities, rose 13% month-on-month (m-o-m) to 989,403 contracts or a notional US$12 billion – the highest since Jan 2023. Month-end OI in SGX USD/CNH FX Futures, the most widely traded international renminbi futures, climbed 14% m-o-m to a record 202,773 lots (US$20.3 billion). OI in benchmark iron ore derivatives, a leading macro proxy for Asia’s growth, increased to a record 270 million metric tonnes (US$31.7 billion) for the month, with a single-day high of 330 million metric tonnes (US$38.2 billion) achieved on 30 May.
- Trusted hedging venue amid India’s general elections: SGX INR/USD FX Futures OI rose to a record 291,656 lots or a notional US$7 billion on 28 May, on the back of inflows into Indian equities as the country’s major indices climbed to record highs. GIFT Nifty futures and options traded volume reached a monthly record of 2.1 million contracts (US$4.3 billion), with OI up 8% m-o-m at 296,419 lots (US$13.4 billion). OI in GIFT Nifty 50 Index Options gained 52% m-o-m to 63,625 contracts (US$2.9 billion), the highest since the start of full-scale operation of the NSE IX-SGX GIFT Connect in July 2023.
The full market statistics report can be found here.
