Market turnover value of ETFs more than doubles to $469m in April: SGX
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Transactions in ETFs on the Singapore Exchange last month surged 140 per cent over April 2019, on the back of strong investment interest and capital inflow to Asia.
ST PHOTO: KUA CHEE SIONG
The turnover in exchange-traded funds (ETFs) on the Singapore bourse surged last month on the back of strong investment interest and capital inflow to Asia.
Transactions hit $469 million in April, up 140 per cent from the same month in 2019.
Meanwhile, the total securities market turnover rose 35 per cent to $29.6 billion last month, while the securities daily average value grew 35 per cent to $1.41 billion, the Singapore Exchange (SGX) noted yesterday.
"Global equities stabilised on early signs of market optimism, following the intense volatility in the first quarter," it said.
The volume of equity index futures fell to 12.3 million contracts - 25 per cent down on April last year.
"The anticipated gradual reopening of the Chinese economy and optimism for more economic stimulus eased portfolio-hedging activity," the bourse operator said.
Last month, China became the first major economy to exit its coronavirus lockdown although it announced a contraction in its gross domestic product for the first quarter of the year.
The demand for currency risk management continued to grow.
The total volume of foreign exchange futures that changed hands on the SGX increased by 13 per cent year on year to 1.7 million contracts in April.
"Market participants noted an uptick in geopolitical tensions between China and the US, which in January signed what was billed as the first phase of a broader trade deal," the SGX said.
Disruptions in the commodities market - particularly in global supply chains - continued to drive demand for risk-management solutions, although trading volumes moderated off the highs of March.
The total commodity derivatives volume on the SGX shrank by 9 per cent from April 2019 to 1.7 million contracts, with iron ore derivatives down 8 per cent to about 1.5 million contracts and Singapore Commodity Exchange rubber futures tumbling 17 per cent to 149,963 contracts.
Prices of West Texas Intermediate crude futures sank below zero for the first time, fuelling volatility across the energy and petrochemical markets.
The SGX's petrochemicals volumes were up 8 per cent in April to 2,492 contracts.
SGX shares closed up 1.2 per cent to $9.92 yesterday.
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