SGX's total market turnover down 5% to $22 bil in June

SINGAPORE (July 9): Singapore Exchange says total securities market turnover value in June dipped 5% month-on-month (m-o-m) to $21.9 billion while securities daily average value (SDAV) gained 5% to $1.2 billion.

“Significant political events have shaped sentiment across emerging Asian markets in recent months, supporting demand for Asian risk management and trading solutions as investors continually readjust their portfolios,” says SGX in its monthly market statistics.

Asian equity markets saw broad gains in June on improved market sentiment following a global selloff in May, with MSCI Singapore Index being ranked the top performer. The Straits Times Index (STI) also recovered 6.5% in June, bringing its total returns for the first six months of 2019 to 10.5%

All sectors registered gains in June, with communications, banks and technology stocks leading the broader market.

REITs, communications services and industrial sectors drove institutional investors’ net buying activities. The top net sell sectors were financials, consumer discretionary, and healthcare.

Fundraising activity was also up year-on-year with two new equity and 53 bond listings, including four sustainability bonds.

The two new equity listings include homegrown interactive technology company Revez Corporation and green-technology company TrickleStar – bringing SGX’s technology sector to a total of 84 companies with combined market capitalisation in excess of US$60 billion ($81.6 billion).

Volume of total derivatives traded increased 17% year-on-year (y-o-y) but declined 14% m-o-m to 20.8 million contracts.

SGX’s suite of MSCI NTR futures – which captures dividends paid by stocks composing the indices – set a new record in June as institutional demand for Asian risk management and trading solutions continue.

In June, volumes of SGX’s portfolio of NTR futures grew almost twice y-o-y, registering a new monthly volume record of 1.4 million lots with open interest hitting a record high of 1.0 million lots on June 20.

MSCI EM Asia, MSCI China, MSCI Japan, MSCI India and MSCI Taiwan were among the most actively traded contracts. MSCI EM Asia contract, in particular, attracted approximately US$8 billion ($2.9 billion) in notional open interest, growing 3.4 times y-o-y.

While analysts expect varied market reactions to the US-China trade situation to continue in the short term, China’s growth remains a secular driver and long-term opportunity for investors.

Against this backdrop, volume of SGX’s USD/CNH futures climbed closer to the 1 million traded mark in June, with an increase of 10% m-o-m and 113% y-o-y.