SGX derivatives volume rises 16% in August with more global investors
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More international investors have turned to SGX to manage risk as China struggles to boost its economic recovery.
ST PHOTO: KUA CHEE SIONG
Mia Pei
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SINGAPORE - Singapore Exchange (SGX) recorded a 16 per cent increase in derivatives traded volume in August to 23.7 million contracts, on both a month-on-month and year-on-year basis.
Derivatives daily average volume rose 7 per cent on the month to one million contracts in August, with broad-based gains across foreign exchange (FX), commodities and equities. Amid China’s efforts to boost its economic recovery, more international investors have turned to SGX to manage risk, said the bourse operator in its monthly market statistics report released on Wednesday.
The total FX futures traded volume reached an all-time high, up 26 per cent to 4.2 million contracts. The average daily volume also hit a record notional of almost US$12 billion (S$16.3 billion).
SGX said that growing uncertainties over the interest rate outlook have pushed investors to beef up currency risk management.
Commodity derivatives traded volume also registered an all-time high, rising 52 per cent to five million contracts compared with the same period in 2022.
The daily average volumes of iron ore, rubber and dairy derivatives all hit records.
In particular, the benchmark iron ore volume increased 54 per cent on the year to 4.5 million contracts, boosted by uncertainties in China’s property market.
On securities, the total market turnover value gained 10 per cent on the month to $23.6 billion, while securities daily average value increased 5 per cent to $1.1 billion. However, as more than 100 stocks were going ex-dividend, the Straits Times Index (STI) fell 4.2 per cent to 3,233.3 on the month, SGX added.
It also noted that secondary fund-raising gained 5 per cent on the year to $214.4 million, as SGX-listed companies continued to tap the equity capital markets in August.
For the first eight months of 2023, STI’s total return stood at 3.8 per cent.
The Singapore stock market also recorded net institutional inflows of $408 million and net retail inflows of $600 million in August. THE BUSINESS TIMES
