Derivatives trading hits record high in February on Covid-19 concerns: SGX

The Singapore Exchange Centre in Shenton Way. ST PHOTO: KUA CHEE SIONG

SINGAPORE (THE BUSINESS TIMES) - The Singapore Exchange's (SGX) derivatives daily average volume (DDAV) hit a record high in February at 1.2 million contracts, according to its latest market statistics report.

DDVA includes equities, foreign exchange (FX) and commodities. Total volume for the month was up 32 per cent year on year to 24 million contracts, close to a high set in May 2019 during a period of heightened trade tensions.

Equity index futures rose 26 per cent to 17.8 million from a year ago, while FX futures was up 52 per cent year on year to 2.4 million. Commodity derivative volume climbed 64 per cent to 2.4 million.

In Singapore, the total securities market turnover rose 44 per cent year on year to $27.5 billion in February. Securities daily average value was up 30 per cent to $1.4 billion year on year.

The Straits Times Index posted negative 4.4 per cent in total returns or negative 6.5 per cent in US dollar terms.

The market turnover value of exchange-traded funds (ETF) on SGX surged to $356 million, more than three times the $103 million recorded a year ago. This was the highest since August 2018.

SGX said that diversification across multiple asset classes boosted the ETF market amid volatility. The combined trading turnover for "safe haven" assets like gold and bond ETFs was at $169 million, up six times year on year.

Total equity and debt fundraising were up 75 per cent to $75.6 billion in February from a year ago.

In February, the bourse saw the listing of Elite Commercial Reit, a UK-focused real estate investment trust (Reit), on the mainboard. It also saw the listing of Russian agricultural company Don Agro on the Catalist.

Both newly-listed companies opened above their initial public offering prices and have continued to trade higher, SGX said.

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