SGX records strong performance in November

SINGAPORE: The Singapore Exchange (SGX) recorded a strong performance in November, setting records in commodity derivatives and foreign exchange (FX) futures trading. Investors shifted focus to Real Estate Investment Trusts (REITs) as they anticipated a possible rate cut by the US Federal Reserve, The Edge Singapore reports.

In its monthly market statistics report, SGX revealed an 8% month-on-month increase in total derivatives trading volume, reaching 22.4 million contracts. The FX sector experienced a notable surge, with FX futures traded volume up by 25% m-o-m, surpassing 4 million contracts.

The SGX USD/CNH Futures, a key international Renminbi (RMB) futures contract, observed a remarkable 33% year-on-year (y-o-y) volume increase, totalling 2.7 million contracts. This surge is attributed to the RMB’s appreciation and exporters executing FX conversions towards the end of the year. Additionally, SGX INR/USD Futures, among the top 10 traded listed FX futures globally, recorded a 13% m-o-m growth, reaching 1.1 million contracts.

The month also witnessed SGX FX achieving a new daily volume record of S$215 billion (US$160 billion) on Nov 30, showcasing strong market participation.

Commodity derivatives took centre stage in November, experiencing a 48% year-on-year surge to 5.4 million contracts, marking a new record high. SGX Commodities’ iron ore derivatives suite recorded its second-highest monthly volume, driven by increased risk management amid rising iron ore prices due to China’s robust demand.

Volatility in vessel freight rates led to a record day and month for SGX Commodities’ FFA derivatives, with an 89% YoY jump to 294,074 contracts. The SGX SICOM rubber futures, a benchmark for natural rubber prices, saw a 34% YoY increase to 295,561 contracts, setting a new record.

In equities, a record net inflow into Taiwanese equities led to a 63% monthly increase in SGX FTSE Taiwan Index Futures open interest, reaching US$8.1 billion. SGX FTSE China A50 Index futures increased by 4% to 7.3 million contracts, driven by higher demand for hedging Chinese equities.

Shifting rate expectations, a weaker US dollar, and geopolitical tensions influenced securities market turnover value, which rose by 1% m-o-m to S$20 billion. The SPDR® Gold Shares ETF emerged as the most heavily traded ETF, reflecting investor interest in safe-haven assets.

Real Estate Investment Trusts (REITs) experienced increased activity, reaching their most active daily turnover since March, with all S-REITs and property trusts trading positively in November. Retail activity also surged, with a 28% m-o-m increase in activity across Daily Leverage Certificates (DLCs) and structured warrants.

SGX Securities expanded its product offerings by listing CGS Fullgoal CSI 1000 ETF, the third China A-Share ETF on SGX. In addition, the SGX Fixed Income reported S$27.3 billion from 57 new bond listings in November.

Shares in SGX closed at S$9.55 on Dec 12. /TISG