SINGAPORE (THE BUSINESS TIMES) - Total market turnover value on the Singapore Exchange (SGX) reached $30.27 billion in May, an 11.5 per cent increase from $27.15 billion in the year-ago period.

This represented a 12.2 per cent rise from $26.99 billion in April.

Optimism of a sustained economic recovery from the global health crisis bolstered derivatives demand, while cash equities were actively traded even as inflation concerns moderated gains, SGX said in its monthly market statistics report on Friday (June 11).

The securities daily average value (SDAV) also climbed, up 5.6 per cent on the year to $1.59 billion. It jumped 24 per cent from the previous month, when the SDAV was $1.29 billion.

SGX noted that the benchmark Straits Times Index continued to outpace the FTSE All World Index on a year-to-date basis, generating a total return of more than 13 per cent. However, it ended its six-month streak of gains, sliding 1.7 per cent for the month to 3,164.28.

In May, Sri Trang Gloves (Thailand), one of the world's largest glove manufacturers, joined the SGX mainboard in a secondary listing.

SGX-listed companies continued to tap the equity capital markets with secondary funds raised of $527 million, the exchange said. The amount issued from 59 bond listings on the exchange increased 45 per cent year on year to $24.1 billion.

Exchange-traded funds rose 27.8 per cent in market turnover value year on year to $386 million in May. Month on month, the increase was 21.8 per cent.

Derivatives traded volume on SGX rose 6 per cent from the previous year to 18.1 million contracts in May.

Trading volume in the foreign-exchange markets gained 2 per cent year on year to two million contracts in May. SGX said that China's economic rebound buoyed institutional demand to risk-manage the renminbi, with SGX USD/CNH Futures climbing 20 per cent year on year to 869,101 contracts.

Total commodity volume on SGX increased 8 per cent month on month to 2.3 million contracts in May, as elevated price volatility spurred hedging demand, the bourse said. Record iron ore prices and volatile steel mill margins drove strong risk-management activity.

Forward freight agreement volume on SGX surged 112 per cent from last year to 147,717 contracts, as demand for freight derivatives continued to be underpinned by supply chain tightness across dry-bulk markets.

Shares of SGX were trading eight cents or 0.8 per cent higher at $10.51 as at 2.35pm on Friday.