SINGAPORE (Nov 8): Singapore Exchange says total securities market turnover value rose to $21.6 billion in October, up 9% against September.

In a 12 noon filing, SGX says a rebound in Asian stock market activity had led to a return of investor risk appetite.

This came amid signs of progress in US-China trade talks and easing uncertainties over the direction Brexit was heading.

Securities daily average value rose 4% m-o-m to $980 million in October while market turnover value for exchange-traded funds (ETFs) surged 55% m-o-m to $236 million.

To recap, the benchmark Straits Times Index (STI) was up 4% during the month, taking its 10-month total return to 9%.

Top gainers for October included Keppel Corp, Sembcorp Industries, CDL Hospitality Trusts, Jardine Cycle & Carriage and Genting Singapore.

Meanwhile, risk management activity among SGX’s broad suite of equity derivatives in October was mixed, given active equities markets.

Total traded volume for equity-index futures declined 14% m-o-m to 12.2 million contracts, with Nikkei 225 Index Futures volume sliding 14% m-o-m.

On the other hand, MSCI Singapore and MSCI Taiwan Index Futures remained strong performers, up 15% and 12% m-o-m, respectively.

In October, Lendlease Global Commercial REIT raised $740.3 million in its SGX IPO, while secondary equity fundraising activity amounted to $1 billion.

Year to date, primary fundraising on SGX reached $3.1 billion – up 50% from the full-year total for 2018 – while secondary fundraising reached $6.4 billion, 5% higher than a year ago.

SGX continued to see the listing of sustainability and green bonds. October saw the issuance of a US$680 million ($924 million) Sustainable Development Goals Bond from CIMB Bank Berhad while Shinhan Bank issued a EUR500 million ($751 million).

The US dollar fell against Emerging Market (EM) currencies amid reduced volatility in foreign exchange (FX) markets. This comes after the US Federal Reserve signalled further interest rate cuts are unlikely this year, following another round of reductions late in Oct.

As a result, SGX USD/CNH Futures increased 43% y-o-y to 634,737 contracts in October, pushing total FX futures up 11% y-o-y at 1.85 million contracts.

A weaker greenback also fuelled price swings in dollar-denominated commodities. Iron ore derivatives volume gained 6% y-o-y to 1.27 million contracts in October, lifting total commodity derivatives volume up 1% y-o-y at 1.49 million contracts.

October saw SGX’s high-grade (65% Fe fines) iron ore contracts transaction volume hitting a record high of almost 4 million metric tonnes, amid higher demand from investors.

Forward freight derivatives volume also rose 11% m-o-m to 77,227 contracts in October.

As at 3.50pm, shares in SGX are up 4 cents at $9.14.