SINGAPORE (May 11): Total securities market turnover value on Singapore Exchange (SGX) has surged by a third in April, on growing optimism shown by stock market investors worldwide.

After the "intense volatility in the first quarter", total securities market turnover value on SGX rose 35% year-on-year (y-o-y) in April to $29.6 billion.

During the month, securities daily average value (SDAV) climbed by 35% y-o-y to $1.41 billion. 

In our most recent print issue, The Edge Singapore reported that local brokerages enjoyed a surge in new account openings.

See: Brokerages see surge in account openings as new investors take advantage of 'market reset'

Besides equities, other major asset classes enjoyed higher trading volumes too. The market turnover value of exchange-traded funds (ETF), for one, increased 140% y-o-y to $469 million on the back of strong investment interest and capital inflow to Asia.

Total foreign exchange (FX) futures traded volume rose 13% y-o-y in April to 1.71 million contracts, as the demand for currency risk management continues to grow.

Equity index futures traded volume on SGX fell 25% y-o-y in April to 12.3 million contracts.

In April, China became the first major economy to emerge from its Covid-19-induced lockdown, even as it announced a contraction in its GDP in 1Q20. The anticipated gradual reopening of the Chinese economy and optimism for more economic stimulus eased portfolio-hedging activity.

Meanwhile, SGX Nifty 50 Index Futures traded volume gained 24% y-o-y in April to 1.94 million contracts, while SGX Nikkei 225 Index Futures climbed 18% y-o-y to 1.79 million contracts.

Significantly, for the benchmark Japanese contract, volume surged 60% y-o-y in the T+1 overnight session, underscoring demand for continuous price formation and round-the-clock risk management from investors in the US and European time zones.

Last month, AMTD International listed on the mainboard of SGX via a secondary listing, becoming the first company to be dual-listed in New York and Singapore.

In April, the total debt fundraising for bonds on SGX reached $18.3 billion. Indonesia raised US$4.3 billion in a three-tranche bond issuance to fund domestic efforts to stem the spread of Covid-19.

In commodities, disruptions in the physical market drove demand for risk-management solutions even as trading volumes moderated off the highs of March.

Total commodity derivatives volume on SGX slid 9% y-o-y in April to 1.73 million contracts, with the exchange’s bellwether iron ore derivatives declining 8% y-o-y to 1.48 million contracts and SICOM rubber futures down 17% y-o-y at 149,963 contracts.

Meanwhile, West Texas Intermediate crude futures prices dropped below zero for the first time, fuelling volatility across the energy complex and downstream petrochemical markets.

As at 1.13pm, shares in SGX are trading 11 cents higher, or 1.1% up, at $9.92.