SGX derivatives daily trading volume hits six-month high in October; securities turnover rises 32%

[SINGAPORE] The Singapore Exchange’s (SGX) derivatives daily average trading volume reached a six-month high in October, as heightened market volatility drove demand for risk management.

Derivatives daily average volume rose 8 per cent year on year and 17 per cent month on month to 1.6 million contracts, its highest level since April, the bourse operator said on Thursday (Nov 12).

Total derivatives traded volume increased 6 per cent year on year and 5 per cent month on month to 31.4 million contracts, up from 29.8 million contracts in September.

Meanwhile, securities market turnover climbed 32 per cent year on year and 6 per cent month on month to S$44.8 billion across 22 trading days.

Securities daily average value rose at the same rates to S$2 billion, driven by stronger trading activity in index stocks and real estate investment trusts.

Shares of SGX were down 0.2 per cent at S$20.70 on Thursday as at 10.28 am, after the announcement.

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The stronger trading activity came amid a broad market correction in October, led by a sell-off in technology stocks. The benchmark Straits Times Index (STI) declined about 5 per cent over the month, while the technology sector was the worst performer, plunging 17.3 per cent.

In the derivatives market, trading in FTSE China A50 Index Futures recorded a 24-month high in daily average volume of 660,868 contracts, as SGX provided continuous liquidity during China’s Golden Week holiday from Oct 1 to 7.

Open interest in the contract increased 25 per cent month on month to about one million contracts.

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Gift Nifty 50 Index Futures and Options recorded their second-highest monthly trading activity, with daily average volume rising 17 per cent month on month to 132,348 contracts.

Open interest exceeded US$20 billion in October, reaching a record high for the second consecutive month.

Foreign exchange derivatives also saw stronger activity, with total traded volume jumping 27 per cent year on year to 8.5 million contracts.

Daily average volume for SGX’s US dollar/offshore yuan futures rose 16 per cent year on year to 190,000 lots, while Indian rupee/US dollar futures daily average volume climbed 40 per cent to 196,421 lots amid changing expectations for US interest rates.

STI retreats from September highs

The benchmark STI ended October at 5,376.74, down 5 per cent from 5,675.88 at the end of September.

Still, the index was up 21 per cent from a year earlier.

Technology stocks led the monthly decline, with the FTSE ST Technology Index falling17 per cent month on month, while the FTSE ST Oil & Gas Index dropped 14 per cent. The FTSE ST Reit Index also slipped 1 per cent.

In commodities, petrochemicals trading volume more than doubled year on year to 23,312 contracts, while Sicom TSR20 Rubber Futures volume climbed 71 per cent to 474,011 contracts amid significant price movements and weather-related supply disruptions.