SGX sees record trading volumes in commodity derivatives, forex futures on China reopening
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SGX’s securities market turnover value gained 27 per cent in March to $28 billion, the highest since May 2022.
PHOTO: ST FILE
Tan Nai Lun
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SINGAPORE – The Singapore Exchange (SGX) posted multiple record trading volumes in commodity derivatives and foreign exchange futures in March as China’s reopening spurred investor optimism.
In its market statistics report, SGX noted that trading activity last month was driven by optimism around China’s recovery, as well as easing expectations for global interest rates to stay elevated.
Its total securities market turnover value gained 27 per cent in March to $28 billion, the highest since May 2022, driven by the inclusion of Sembcorp Marine in the MSCI Singapore Index and increased trading activity in the banking sector, as well as growth in small- and mid-cap stocks.
The securities daily average value also rose, gaining 10 per cent in March to $1.22 billion, the highest since November 2022.
The total traded volume in SGX commodities rose 20 per cent month on month to an all-time high of 4.2 million contracts, SGX said.
Iron ore derivatives volume climbed 20 per cent month on month to a record 3.7 million contracts, and forward freight agreement futures volume increased 27 per cent to a new high of 246,629 contracts.
The total derivatives traded volume rose 17 per cent to 23.5 million contracts, the highest since November 2022, while the derivatives daily average volume climbed 4 per cent to one million contracts.
Meanwhile, the foreign exchange futures traded volume on SGX rose 25 per cent to 3.7 million contracts, amid strong institutional demand to manage Asian currency risk.
Traded volume on the SGX USD/CNH futures climbed 44 per cent to a record high of 2.2 million contracts, and its average daily volume reached a record US$9.5 billion (S$12.7 billion), as China’s domestic economic outlook improved and renminbi-denominated trade settlements and investments gained traction. CNH refers to the Chinese renminbi traded in the offshore market.
The average daily volume of SGX KRW/USD futures increased to a record 8,577 lots as market volatility drove more hedging. KRW refers to the Korean won. THE BUSINESS TIMES
