- Derivatives daily average volume rises to highest since March 2020
- SGX MSCI Singapore Index Futures, SGX USD/CNH Futures set multiple volume records
Singapore Exchange (SGX Group) today released its market statistics for October 2022. Derivatives volume across multiple asset classes climbed to new highs amid increased trading activity by global institutions, as optimism that central banks may moderate their interest-rate hike cycles countered concerns over China’s economic outlook.
Derivatives daily average volume (DAV) gained 23% year-on-year (y-o-y) in October to 1.2 million contracts, the highest since March 2020. Total derivatives traded volume across equity, foreign exchange (FX) and commodities was up 21% y-o-y at about 22 million contracts.
The SGX Equity Derivatives suite of Asian benchmark index futures saw robust activity in October, as volume rose 15% y-o-y to 15.3 million contracts. SGX FTSE China A50 Index Futures volume climbed 15% y-o-y to 8.4 million contracts – with steady trading through China’s Golden Week – while SGX FTSE China H50 Index Futures posted a record DAV for the month. SGX FTSE Taiwan Index Futures volume increased 17% y-o-y to 1.6 million contracts. SGX MSCI Singapore Index Futures volume gained 33% y-o-y to 1.4 million contracts, setting records for single-day volume, DAV and month-end open interest.
More Trading Activity in FX, Commodities
Heightened inflation expectations and sustained U.S. dollar strength drove hedging on SGX FX, Asia’s most comprehensive currencies marketplace. Total FX futures volume surged 49% y-o-y in October to 3.3 million contracts, with SGX INR/USD Futures volume up 17% y-o-y at 1.5 million contracts.
The SGX USD/CNH Futures contract reinforced its position as the world’s most widely traded international renminbi futures, with average daily volume (ADV) rising 86% y-o-y to US$7.8 billion – an all-time high. ADV of SGX KRW/USD Futures climbed 25% y-o-y to a record US$121.2 million, while month-end open interest increased 88% month-on-month (m-o-m) to US$155.8 million.
Iron ore prices fell in October as infrastructure and construction activity remained weak. Benchmark iron ore derivatives volume jumped 79% y-o-y to 2.5 million contracts on the back of hedging demand, lifting total derivatives volume by 55% y-o-y to 2.9 million contracts. Petrochemicals volume gained 6% y-o-y, while the slowdown in physical commodity trading was reflected in reduced activity in freight derivatives.
SGX Commodities launched Shanghai rebar futures on 31 October, further providing market participants with capital-efficient access to China, the world’s largest producer and consumer of steel.
More Trading in Banks, Blue Chips
On SGX Securities, the market turnover value of structured warrants and daily leverage certificates (DLC) rose 71% m-o-m in October to S$1.1 billion, supported by elevated volatility in foreign underlying stocks. There was a notable increase in trading of Singapore underlyings including banks and blue chips. Turnover of exchange-traded funds (ETF) climbed 5% m-o-m to S$330 million.
Total securities market turnover value was down 10% m-o-m in October at S$23.1 billion, while securities daily average value (SDAV) slid 1% m-o-m to about S$1.2 billion.
During the month, stock market activity in Singapore was characterised by a fluid outlook for growth, trade, inflation, rates as well as earnings. Net fund inflows were led by the industrials, telecommunications, technology and energy sectors, while net outflows were largely attributed to the real-estate investment trusts (REIT) sector.
The bellwether Straits Times Index (STI) declined 1.2% in October to 3,093.11. This brought its total return for the first 10 months of 2022 to +2.6%, compared with -9% for the FTSE ASEAN All-Share Index and -15.6% for the FTSE Developed Index.
On SGX Fixed Income, Asia’s leading international bond marketplace, the amount issued from 83 new bond listings stood at S$17.4 billion in October. Highlights included the Housing and Development Board’s S$1.2 billion five-year green bonds, Industrial Bank of Korea’s US$600 million two-year social bonds and Komatsu Finance America Inc.’s US$600 million five-year sustainability-linked notes.
The full market statistics report can be found here.
