Singapore Exchange (SGX Group) today reported strong market performance in May as global participants gravitated toward its trusted and efficient marketplaces, amid measured optimism and easing U.S. tariff-driven volatility. The Singapore stock market continued to stand out for its quality and value to investors, while institutional hedging remained robust as investors recalibrated portfolios in response to market uncertainty.
Key highlights:
- Securities market boost as investors seek quality: Securities daily average value (SDAV) rose 6% year-on-year (y-o-y) in May to S$1.3 billion, while total securities market turnover value climbed 1% y-o-y to S$26.9 billion. SGX Securities remained among ASEAN’s most-actively traded markets, with cash SDAV topping several regional peers. The Straits Times Index (STI) advanced 1.6% month-on-month (m-o-m) to 3,894.61, as Singapore’s appeal to investors as a flight-to-quality venue brought the benchmark close to all-time highs posted in March.
- Sustained ETF growth: The market turnover value of exchange-traded funds (ETF) increased 22% y-o-y in May to S$376 million as market participants continued to favour safe-haven and higher dividend-yielding stocks. The SPDR Gold Shares ETF recorded its 12th consecutive months of gains, bringing net inflows over the one-year period to S$500 million, while net inflows into the two STI ETFs crossed S$60 million in May – the highest since September 2020.
- More portfolio risk management: Derivatives daily average volume (DDAV) rose 11% y-o-y in May to 1.3 million contracts, with total derivatives traded volume up 6% y-o-y at 25.4 million contracts on the back of heightened institutional risk management. SGX FTSE China A50 Index Futures was a standout, with traded volume climbing 4% y-o-y to 7.8 million contracts. The SGX Equity Derivatives bellwether is the world’s most liquid international futures contract for Chinese equities.
- Korean won among FX futures outperformers: DAV of SGX KRW/USD FX Futures increased 143% y-o-y to a monthly record of 38,294 lots (US$685 million notional) in May, as unprecedented volatility in the Taiwan dollar spilled over to emerging Asia currencies, notably the Korean won. SGX KRW/USD Mini Futures attracted a significant influx of new participants, as did SGX USD/CNH Options, which posted a single-day open interest (OI) record of 8,189 lots (US$818 million notional).
- Record petrochemicals volume: Petrochemicals derivatives traded volume more than doubled y-o-y in May to the equivalent of 4.4 million metric tonnes (MT), with monthly average OI surpassing 3 million MT as physical cargo prices rebounded. On 13 May, SGX Commodities cleared a single-day petrochemicals volume record of 0.5 million MT.
The full market statistics report can be found here.
