SGX derivatives total grew 17% YoY to 20.8 million contracts in June

Securities daily average value gained 5% to $1.2b.

Total derivatives traded volume edged up 17% YoY to 20.8 million contracts in June but fell 14% MoM as compared to the volume in May, according to an SGX report.

Total securities market turnover value dipped 5% MoM to $21.9b, whilst securities daily average value (SDAV) gained 5% to $1.2b.

Asian equity markets saw broad gains in June on improved market sentiment, following a global sell-off in May, with MSCI Singapore Index (SiMSCI) coming in as the top performing index. The Straits Times Index (STI) recovered 6.5% in June, bringing STI total return for the first six months of 2019 to 10.5%.

Volumes of SGX’s portfolio of NTR futures doubled YoY to a new monthly volume record of 1.4 million lots, with open interest hitting record high of 1 million lots as of 20 June. MSCI EM Asia, MSCI China, MSCI Japan, MSCI India and MSCI Taiwan were amongst the most actively traded contracts. MSCI EM Asia’s contract alone attracted about US$8b in notional open interest, which grew 3.4 times YoY.

All sectors registered gains in the month of June, with Communications, Banks and Technology stocks leading the broader market. REITs, Communications Services and Industrials sectors drove institutional investors net buying activities. The top net sell sectors were Financials, Consumer Discretionary, and Healthcare.

Market turnover value of exchange traded funds (ETFs) rose 17% MoM to $205m, whilst the market turnover value of structured warrants and daily leverage certificates (DLCs) slipped 2% to $801m. Outstanding value of DLCs grew five times YoY to $15m in June 2019, on the back of growing market participation. There are now 75 DLCs, including 56 single stock DLCs.

Total funds raised through bond listings more than doubled as well, rocketing 102% MoM and 132% YoY to $26.8b. The number of bond listings rose 33% YoY to 53 in June.