January SGX volume up 27% to $1.2b

Market turnover value of structured warrants and DLCs surged 94% MoM.

The securities daily average value (SDAV) climbed 27% MoM to $1.2b in January, whilst market turnover value also rose 27% MoM to $263m, according to an SGX report.

The monthly turnover is said to be at its highest level since August 2018. Market turnover value of structured warrants and daily leverage certificates (DLCs) surged 94% MoM to $920m.

Structured warrants on the Hang Seng Index were the most actively traded, with 65% of the turnover in call warrants and 35% in put warrants, whilst DLCs on Tencent stock were the most actively traded with 36% of the turnover in the long DLC and 64% in the short DLC.

In addition, total equity and debt fundraising reached $50.4b in January, up 49% MoM. The initial public offering (IPO) of Resources Global Development was the first in 2020 as well as the listing of debut international sovereign bonds by Lao People’s Democratic Republic.

Total traded volume in SGX equity index futures climbed 13% MoM to 14.3 million contracts in the same period, which was led by a 30% MoM jump for both SGX FTSE China A50 Index Futures (to 7.3 million contracts) and SGX Nifty 50 Index Futures (to 2.0 million contracts).

On a YoY basis, SGX MSCI Singapore Index Futures (+33%) and SGX Nikkei 225 Index Futures (+18%) were the top performers as traded volume rose to 1.1 million contracts and 1.9 million contracts, respectively.

Total foreign exchange (FX) futures traded volume also climbed 25% YoY in January to 2.3 million contracts, including a 15% gain for SGX USD/CNH Futures to 842,705 contracts.

On the other hand, total iron ore derivatives traded volume was down 8% MoM to about 1.3 million contracts (127.7 million metric tonnes) in January as prices took a sharp turn lower amidst news of the coronavirus outbreak.

However, SGX noted that there were still of record open interest across commodity derivatives, signalling increased adoption of the exchange’s products for risk management. These included 65% Fe fines high-grade iron ore, forward freight agreements (FFAs), as well as electricity futures.