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- SDAV posts 12th consecutive month of gains
- Derivatives volume across multiple asset classes rises to four-month high
Singapore Exchange (SGX) today released its market statistics for January 2021. Securities daily average value (SDAV) gained year-on-year (y-o-y) for a 12th straight month as investors weighed the outlook for a post-pandemic global economic recovery. Derivatives volume across multiple asset classes rose to a four-month high.
Total securities market turnover value on SGX increased 16% y-o-y in January to S$29.7 billion, while SDAV climbed 22% y-o-y to S$1.5 billion. SGX-listed medical suppliers continued to trade actively, with the iEdge SG All Healthcare Index generating a 4% return during the month, amid the rollout of COVID-19 vaccines around the world. Manufacturing stocks also contributed strongly to turnover. Singapore’s three newest Mainboard-listed stocks – G.H.Y Culture & Media Holding, Credit Bureau Asia and Nanofilm Technologies International – ranked among the most active in January. The benchmark Straits Times Index (STI) was up 2.1% month-on-month (m-o-m) at 2,902.52.
The market turnover value of exchange-traded funds (ETFs) on SGX jumped 112% y-o-y to S$557 million, with equity ETFs growing the most, more than tripling during the month. The four ETFs that listed in 2020 had a combined trading turnover of S$84 million in January, or 15% of total ETF turnover on the exchange.
The Asian primary bond market saw a broad-based increase in activity in January. On SGX, Asia's largest international bond marketplace, there were 74 new bond listings – the most since February 2020. Total funds raised from equity fundraisings and amounts issued from bond listings reached S$40 billion in January, up 56% m-o-m to the highest amount since September 2020.
Multi-Asset Volume Gains
Total derivatives traded volume on SGX gained 2% y-o-y to 19.8 million contracts in January, the highest amount in four months. Equity index futures traded volume rose 4% y-o-y to 14.8 million contracts, bolstered by a 20% increase in SGX FTSE China A50 Index Futures to 8.8 million – the highest since July 2020.
During the month, SGX launched its pioneering Environment, Social and Governance (ESG) derivatives, a key thrust of the SGX FIRST sustainability initiative. The suite of four new contracts was introduced to offer more choice in promoting the integration of ESG factors into institutional investment portfolios.
Since the start of its financial year in July 2020, SGX has developed 29 new equity index futures with FTSE Russell, clearing more than US$400 billion of the contracts. This significantly broadened investor access to opportunities across Asian economies, reinforcing SGX’s leading role connecting global institutions to the region.
In foreign exchange (FX) futures, total FX futures trading volume on the exchange climbed 3% m-o-m to 2.1 million contracts, the highest amount since September 2020. SGX INR/USD Futures rose 8% to 1.2 million, while SGX USD/CNH Futures were down 3% at 844,967 contracts amid reduced volatility. SGX is Asia’s biggest FX futures marketplace.
SGX commodity derivatives traded volume increased 31% y-o-y to 2.1 million contracts in January, with gains across the exchange’s unique “virtual steel mill” offering. Iron ore derivatives climbed 27% to 1.6 million contracts, while forward freight derivatives advanced 51% to 140,083 contracts – a record high. SGX has a global shipping derivatives market share of 60%, enabling efficient risk management of both cargo and freight.
Petrochemicals volume, a proxy for growth in China’s consumption, surged 178% y-o-y on SGX to 8,034 contracts. This was a fifth consecutive month of triple-digit jumps.
The full market statistics report can be found here.
