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SGX total securities market down by 21.7% y-o-y to $28.0 bil in March

Felicia Tan
Felicia Tan • 4 min read
SGX total securities market down by 21.7% y-o-y to $28.0 bil in March
During the month, the group reported “multiple volume records” in foreign exchange (forex) futures and commodity derivatives. Photo: Albert Chua/The Edge Singapore
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The Singapore Exchange (SGX) Group S68 -

reported elevated trading activity in the month of March on the back of optimism over China’s recovery along with easing expectations for global interest rates to remain high.

During the month, the group reported “multiple volume records” in foreign exchange (forex) futures and commodity derivatives.

In March, total market securities turnover fell by 21.7% y-o-y but rose by 26.6% m-o-m to $28.0 million. The m-o-m growth was attributed to the inclusion of Sembcorp Marine (SembMarine) to the MSCI Singapore Index, increase trading activity in the banking sector, as well as growth in small and mid-cap stocks. Securities turnover growth in Singapore outperformed markets across Asean, says the group.

March had 23 trading days, the same as March 2020. February this year had 20 trading days.

Securities daily average value (SDAV) fell by 21.8% y-o-y but rose by 10.0% m-o-m to $1.2 billion, the highest since November 2022. The average securities clearing fee for the January-to-March quarter was 2.44 basis points.

In March, the market turnover value of exchange-traded funds (ETF) fell by 45% y-o-y but rose 24% m-o-m to $366 million, while turnover of structured warrants and daily leverage certificates (DLC) fell by 27.5% y-o-y but increased 39% m-o-m to $919 million.

See also: MSCI launches product for portfolio management using genAI

During the month, SGX Securities welcomed Mirae Asset Securities (HK) Limited, part of Mirae Asset Group, as a new DLC issuer. The inclusion marked the first batch of SGX-listed DLCs that can be traded in US dollars, which means investors now have more opportunities to trade or hedge US exposures during Asian trading hours.

Total derivatives traded volume fell by 10.9% y-o-y but rose 17% m-o-m in March to 23.5 million contracts, the highest since November 2022. Meanwhile, derivatives daily average volume (DDAV) fell by 10.5% y-o-y but climbed 4% m-o-m to 1 million contracts.

The average fee per contract for equity, currency and commodity derivatives for the January-to-March quarter was $1.65.

See also: ECB Preview: Cut in June, Debate on July, Move in September

In March, equity index futures traded volume gained 14% m-o-m in March to 14.9 million contracts, led by a 17% m-o-m increase in SGX Nifty 50 Index Futures volume to 2.7 million contracts.

SGX FTSE China A50 Index Futures volume rose 3% m-o-m to 7.7 million contracts.

Other SGX equity derivatives benchmarks also saw broad-based gains in March with the SGX Nikkei 225 Index Futures volume up 84% m-o-m. Volume for SGX FTSE Taiwan Index Futures climbed 26% m-o-m, while SGX MSCI Singapore Index Futures volume increased 14% m-o-m.

Forex futures traded volume on SGX FX rose 25% m-o-m in March to 3.7 million contracts, amid strong institutional demand to manage Asian currency risk. For the first quarter of 2023, volume was up 36% from the same period last year at 9.3 million contracts.

SGX USD/CNH Futures traded volume climbed 44% m-o-m in March to a record-high of 2.2 million contracts, as China’s domestic economic outlook improved and yuan-denominated trade settlement and investments gained traction.

Average daily volume (ADV) of the contract reached a record US$9.5 billion ($12.64 billion) in March, up 79% y-o-y. ADV of SGX Korean won (KRW)/US dollar (USD) Futures increased 60% y-o-y to a record 8,577 lots as market volatility drove more hedging.

In commodities, total traded volume rose 20% m-o-m to an all-time-high of 4.2 million contracts in March. For the first quarter of 2023, volume was up 22% from the same period last year at 10.6 million contracts.

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Iron ore derivatives volume climbed 20% m-o-m in March to a record 3.7 million contracts.

Forward freight agreement (FFA) futures volume gained 27% m-o-m to 246,629 contracts, a new high alongside record open interest in FFA options.

The volume of SGX SICOM rubber futures, the global pricing bellwether for natural rubber, rose 10% m-o-m in March to 196,791 contracts. For the first quarter of 2023, volume was up 17% from the same period last year at 531,212 contracts.

On SGX Fixed Income, Asia’s leading international bond marketplace, the amount issued from 36 new bond listings stood at $16.6 billion. Highlights included a US$2 billion three-tranche senior unsecured bond offering by Sumitomo Mitsui Trust Bank Limited, which included a US$500 million five-year green tranche; a EUR1.35 billion ($1.96 billion) dual-tranche green bond offering by Australia’s NBN Co. Limited; and a US$1 billion 10-year bond by Brazilian petrochemical company Braskem

As at end-March, the benchmark Straits Times Index (STI) fell by 0.1% m-o-m to 3,258.9 points from the 3,262.63 points as at end-February. The total market capitalisation value of 646 listed companies stood at $829.8 million as at end-March.

Shares in SGX closed 2 cents lower or 0.21% down at $9.51 on April 10.

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