Singapore Exchange (SGX Group) today released its market statistics for October 2024. Derivatives daily average volume (DAV) rose to an all-time high, boosted by increased trading activity across multiple asset classes through China’s Golden Week holiday. The Singapore stock market showed its resilience against a backdrop of softer regional growth.
Key highlights:
- Record derivatives DAV: Derivatives DAV surged 48% year-on-year (y-o-y) in October to a record 1.58 million contracts, while total traded volume climbed 52% y-o-y to 31.3 million contracts. Gains were broad-based, with equity index futures volume up 61% y-o-y at 19.9 million contracts, foreign exchange (FX) futures volume up 63% y-o-y at 5.32 million contracts and commodity derivatives volume up 25% y-o-y at 5.58 million contracts, demonstrating the strength of SGX Group’s multi-asset offering.
- Record China A50 index futures activity through Golden Week: The volume of SGX FTSE China A50 Index Futures – the world’s most liquid international futures for Chinese equities – rose to an all-time high of 14.9 million contracts in October, with DAV at a record 827,997 contracts. Open interest reached a single-day record of 1.26 million contracts on 8 October. There was also heightened activity during the overnight T+1 sessions, as global investors managed their China exposures before the cash market’s reopening.
- Commodities volume growth: Stronger demand to manage and navigate China risk also drove commodity trading activity in October. The volume of SGX SICOM rubber derivatives, the global pricing benchmark for natural rubber, increased 64% y-o-y to 423,666 contracts amid heightened volatility, marked by a growing base of market participants. With China's markets closed during the first five trading days of the month, market participants continued to access SGX Commodities with DAV of bellwether iron ore derivatives reaching 102,131 lots while DAV of SICOM rubber derivatives climbed to 15,139 lots – a record for Golden Week.
- Growth in FX futures hedging: Total FX futures traded volume gained 53% y-o-y in October to a notional US$362.7 billion as U.S. Treasury bond yields climbed, setting the stage for November’s elections and Federal Reserve meeting. SGX USD/CNH FX Futures were a standout, with volumes up 50% y-o-y at 3.11 million contracts (notional US$311.5 billion), fuelled by China’s measures to bolster economic stability following stimulus efforts in September. SGX INR/USD FX Futures volume increased 76% y-o-y to 1.75 million contracts. DAV of SGX KRW/USD FX Futures climbed 150% y-o-y to a record US$361 million notional, with open interest up 400% y-o-y at US$745 million.
- Singapore stock market remains flight-to-quality venue: Securities market turnover value rose 36% y-o-y in October to S$26.9 billion, with securities daily value (SDAV) also up 36% y-o-y at S$1.22 billion. The benchmark Straits Times Index (STI) moved within a narrow 90-point range during the month to 3,558.88, taking its year-to-date gains to 9.8%. Retail investors net bought S$210 million of cash equities in October, reversing outflows from the previous month, while institutional outflows were moderate compared with ASEAN venues, underscoring the Singapore market’s resilience. On 16 October, SGX Securities welcomed Food Innovators Holdings Limited, which is engaged in the restaurant leasing and subleasing business, to Catalist.
- New securities product launches: SGX Securities listed new daily leverage certificates (DLC) linked to the U.S. Magnificent Seven stocks in October, with structured certificates planned for the coming months that will further expand its suite of structured products. For the month, the market turnover value of DLCs doubled month-on-month (m-o-m) to S$382 million, while turnover of structured warrants increased 123% m-o-m to S$512 million, bringing the total to the highest since March 2022. On 30 October, SGX Securities broadened its offering of Singapore Depository Receipts with the launch of five new contracts with Hong Kong underlyings.
The full market statistics report can be found here.
