SGX turnover plunges 27% to $20.6b in August

SGX has been plagued by weak trading volumes and exits of well-known brands such as Eu Yan Sang International, Tiger Airways and Osim International. August had only one mainboard IPO, one new Catalist listing and 36 new bond listings.
SGX has been plagued by weak trading volumes and exits of well-known brands such as Eu Yan Sang International, Tiger Airways and Osim International. August had only one mainboard IPO, one new Catalist listing and 36 new bond listings. PHOTO: AGENCE FRANCE-PRESSE

Turnover dived even with more trading days than same month last year; steepest annual drop since June 2014

Turnover on the local securities market plunged 27 per cent to $20.6 billion last month, even though the month had more trading days than in August last year.

Last month had 22 trading days compared with 19 in August last year.

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

And compared with July, turnover in the securities market fell 2 per cent, the Singapore Exchange (SGX) said yesterday.

There were 20 trading days in July.

FT also noted in July, when the exchange shut down for about half a day because of a computer malfunction, securities turnover was down 7 per cent month on month and down 13 per cent year on year.

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

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

August had only one mainboard initial public offering, raising $195.1 million, one new Catalist listing, raising $5.9 million, and 36 new bond listings that raised $10.9 billion.

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

The bourse has been plagued by weak trading volumes, and exits of well-known brands such as traditional Chinese medicine firm Eu Yan Sang International, Tiger Airways and Osim International.

Remisier Desmond Leong told The Straits Times in earlier comments that "stockbroking is looking like a sunset profession now".

On the derivatives front, SGX said the total volume was 13.8 million, up 7 per cent month on month, but down 19 per cent year on year.

Commodities, however, presented a brighter picture. The commodities derivatives volume was 1.2 million, down 8 per cent month on month, but soared 59 per cent year on year.

The iron ore derivatives volume was 1.1 million, down 7 per cent month on month, and shot up 61 per cent year on year.

The SGX is in the midst of a proposed acquisition of the Baltic Exchange.

Early last month, it made a formal offer to buy 100 per cent of the British supplier of key maritime data, which includes the Baltic Dry Index that is used to price freight and freight derivatives.

One possible plan, the SGX said, was to have Baltic's management team in active roles in the SGX's commodities business.

A version of this article appeared in the print edition of The Straits Times on September 08, 2016, with the headline 'SGX turnover plunges 27% to $20.6b in August'. Print Edition | Subscribe