SGX securites turnover falls 27% in August, biggest drop since June 2014

Turnover in the local securities market fell 27 per cent to S$20.6 billion in August, compared the same month a year ago.
Turnover in the local securities market fell 27 per cent to S$20.6 billion in August, compared the same month a year ago.PHOTO: REUTERS

Singapore - Turnover in the local securities market fell 27 per cent to S$20.6 billion in August, compared the same month a year ago, the Singapore Exchange (SGX) said on Wednesday (Sept 7).

This was despite 22 trading days in August this year, compared with 19 last year.

This is the steepest annual drop since turnover fell 37 per cent to S$20.5 billion in June 2014, compared with a year earlier, said the Financial Times.

Compared with July, turnover in the securities market fell 2 per cent, SGX said in its release of monthly market data. There were 20 trading days in July.

July was a low base as the Singapore market was closed for half a day because of a computer malfunction, leading to securities turnover falling 7 per cent month-on-month and 13 per cent year-on-year.

The daily average value of securities traded in August fell 11 per cent to S$936 million compared with July, but also plunged 37 per cent year on year.

The market turnover value of exchange-traded funds dropped 25 per cent to S$207 million in August compared with July, and shrank 33 per cent compared with the same month last year.

August also saw only one mainboard initial public offering, which raised S$195.1 millionm - but 36 new bond listings that raised S$10.9 billion.

The total market capitalisation value of the 767 listed companies on the SGX stood at S$909.7 billion as at Aug 31.

The market in derivatives fared somewhat better. Total volume at 13.8 million contracts was up 7 per cent month on month, while falling 19 per cent year on year. This was an improvement though from the 40 per cent year on year contraction in July.

Commodities derivatives volume at 1.2 million contracts was down 8 per cent month on month in August, but up 59 per cent from a year ago.

rachaelb@sph.com.sg