SGX Group reported strong trading in May, with securities turnover up 70%, derivatives volume up 20%, and institutional interest in small stocks driving record highs in the Singapore market.
SGX Group (Singapore Exchange) reported robust trading activity in May amid sustained investor participation, as Singapore’s stock market became Southeast Asia’s largest by market capitalisation and demand for trusted risk-management tools expanded across equities, FX and commodities.
Securities market turnover value rose 70% year-on-year (y-o-y) to S$45.8 billion, with securities daily average value (SDAV) climbing 79% to S$2.4 billion – the highest since October 2007. Derivatives traded volume increased 20% y-o-y to 30.5 million contracts, while daily average volume (DAV) gained 27% to 1.6 million contracts, the third-largest on record.
Key highlights:
- Strong momentum in small- and mid-cap stocks: The benchmark Straits Times Index advanced 3.5% month-on-month (m-o-m) in May, reaching an all-time high of 5,072 on 19 May amid banking- and technology-led gains. STI exchange-traded funds (ETF) marked a 15th consecutive month of net inflows with S$129 million in May and S$687 million year-to-date (YTD). Momentum in small- and mid-cap stocks excluding REITs continued to accelerate, as SDAV rose 24% m-o-m and more than four times y-o-y. Institutional investors remained net buyers of small- and mid-caps for a fifth consecutive month, bringing total inflows over the past 12 months to over S$800 million.
- Investor participation strengthens across securities: SDAV increased across all investor segments, led by institutional investors with incremental S$184 million m-o-m growth. Retail SDAV climbed 11% m-o-m, surpassing the February peak and setting a 13-year high. Cumulative net inflows by retail investors exceeded S$1.5 billion over the first five months of this year, reflecting sustained interest in Singapore equities.
- Capital-raising activity gathers pace: SGX Stock Exchange on 22 May welcomed JustCo Holdings Limited, a leading flexible-workspace operator with an established Asia-Pacific footprint, to its Mainboard. Three Catalist companies – Lum Chang Creations Limited, CNMC Goldmine Holdings Limited, and Koh Brothers Eco Engineering Limited – announced transfers to the Mainboard. Secondary placements by non-REIT issuers including Hong Leong Asia Ltd. and Aspial Lifestyle Limited raised a combined S$316 million.
- Risk-managing India equities: Global investors turned to SGX Derivatives for their risk-transfer instrument of choice for India equities. DAV in GIFT Nifty 50 Index Futures and Options gained 6% m-o-m in May to 112,894 contracts, underpinned by broad-based and active participation across customer segments. Open interest (OI) was up 12% m-o-m at 290,377 contracts (US$13.7 billion notional), a record high.
- Round-the-clock activity in FX futures: Market participants actively managed risk through FX futures as signs of a resilient U.S. economy placed sustained pressure on Asian currencies. DAV across all listed FX futures rose 29.6% y-o-y in May to 505,864 lots (US$29 billion notional), with average OI up 18.9% y-o-y at 544,651 lots (US$31.5 billion notional). The SGX KRW/USD FX Futures (Mini) contract saw peak activity in the European afternoon/U.S. morning, while month-end OI in SGX TWD/USD FX Futures climbed 37% m-o-m.
- Broad-based growth across commodities: DAV across SGX Commodities rose 4.7% y-o-y in May, supported by increased trading in bellwether iron ore contracts, forward freight agreements (FFA) and SGX SICOM rubber derivatives. Average OI for the YTD through May gained 20.6% y-o-y, reflecting sustained hedging demand. Container FFA activity was robust, with volumes reaching a new high of 2,568 contracts.
The full market statistics report can be found here.
Source : SGX Group records strong May performance with new volume highs across asset classes
