Derivatives daily average volume (DAV) rose 18% month-on-month (m-o-m) in January to 1.1 million contracts, climbing 6% on a year-on-year (y-o-y) basis. On SGX Equity Derivatives, DAV of the SGX FTSE China A50 Index Futures was over 193,000 lots during Lunar New Year Golden Week – a record high, up almost three times from the same period observed in February last year. Month-end open interest in the contract, the world’s most liquid international futures for Chinese equities, gained 37% m-o-m to 1.1 million contracts (US$15 billion), as participants positioned themselves for opportunities from China’s reopening.

Similarly, the SGX FTSE Taiwan Index Futures contract saw average daily volume (ADV) increasing 43% y-o-y to more than 35,000 contracts during the onshore holidays, with month-end open interest up 32% m-o-m to about 109,000 contracts. SGX Nifty 50 Index Futures traded volume rose 11% m-o-m in January, while SGX MSCI Singapore Index Futures volume climbed 4% m-o-m.

Strong hedging demand in FX

China’s pivot from zero-COVID and related policy support buoyed risk appetite for the renminbi (RMB), fueling hedging demand in Asian foreign exchange (FX). Total futures traded volume on SGX FX gained 42% y-o-y in January to 2.7 million contracts, led by a 55% y-o-y volume increase in SGX USD/CNH Futures – the world’s most widely traded international RMB futures. Market participants also sought exposure to India amid lower oil prices and domestic growth momentum, with SGX INR/USD Futures volume rising 31% y-o-y.

ADV of over-the-counter (OTC) FX climbed 18% y-o-y to about US$80 billion in January, on track to reach a medium-term target of US$100 billion.

Expanded financial participation in iron ore

On SGX Commodities, the financialisation of iron ore continued apace with strong screen-trading activity in January despite the slowdown in the physical market over the Lunar New Year. Total commodity derivatives traded volume climbed 32% y-o-y to 2.9 million contracts, with iron ore volume up 37% y-o-y amid positive sentiment on the property sector following China’s reopening.

Increased hedging demand was also observed in freight derivatives as prices gapped downwards after the year-end holiday season, with forward freight agreement (FFA) traded volume rising 24% y-o-y and 34% m-o-m. The unique SGX Commodities offering enables market participants to manage both cargo and freight risks on a single liquid and capital-efficient platform. The volume of SGX SICOM rubber futures, the world’s pricing bellwether for natural rubber, climbed 9% y-o-y.

Securities turnover outperforms

On SGX Securities, securities daily average value (SDAV) rose 24% m-o-m in January to S$1.2 billion, as total market turnover grew 12% m-o-m to S$22 billion – outpacing turnover growth in most Southeast Asian markets. Turnover increased across all segments, led by Straits Times Index (STI) constituent stocks and real-estate investment trusts (REIT) as activity rebounded from the year-end. The benchmark STI advanced 3.5% to 3,365.67 in January, its highest monthly close since April 2022.

As the Internet and semiconductor industries led the global stock market in January, the technology sector booked the most net fund inflows in Singapore, following the most outflows last year. Among the 100 most-traded Singapore stocks in January, eight represented the technology sector, averaging 11% total returns for the month after a 36% decline in 2022.

On SGX Fixed Income, the amount issued from 38 new bond listings stood at S$25.8 billion in January. Highlights included Export-Import Bank of Korea’s US$3.5 billion three-tranche bond offering, including a US$1 billion 10-year blue bond; Republic of Indonesia’s US$3 billion three-tranche bond offering; SK Hynix Inc.’s US$2.5 billion three-tranche bond offering, including a US$1 billion five-year sustainability-linked tranche and a US$750 million 10-year green tranche; as well as a US$1.9 billion three-tranche senior notes offering from Nomura Holdings, Inc.

The full market statistics report can be found here.