·Derivatives volume grows across multiple asset classes

·Singapore's first active ETF listed

Singapore Exchange (SGX Group) today released its market statistics for January 2024. Global investors continued to lean on SGX Group’s trusted platform to manage risk amid waning expectations that central banks would soon cut interest rates, alongside mixed views over the pace of growth in key Asian economies.

Derivatives traded volume rose 27% year-on-year (y-o-y) in January to 24.6 million contracts, the highest since March 2022, with strong increases across equities, foreign exchange (FX) and commodities. Derivatives daily average volume (DDAV) climbed 9% month-to-month (m-o-m) to 1.1 million contracts, extending gains made in 2023.

On SGX Equity Derivatives, total equity index futures volume rose 11% y-o-y in January to 14.6 million, a 10-month high. The volume of SGX FTSE China A50 Index Futures increased 27% y-o-y to 9.4 million contracts, the highest since June 2022, amid heightened institutional risk management as China’s government took steps to support the economic recovery and reassure investors. The contract is the world’s most liquid international futures for Chinese equities.

SGX FTSE Taiwan Index Futures volume climbed 37% y-o-y in January at 1.6 million contracts on the back of strong earnings from the technology sector. GIFT Nifty Futures volume gained 11% m-o-m to 1.7 million contracts, boosting daily average volume to a record US$3.6 billion as global funds continued to be drawn to India.

Record FX activity

On SGX FX, total futures volume rose 57% y-o-y in January to 4.3 million contracts, a record high. SGX USD/CNH Futures volume more than doubled to 2.6 million contracts. On 22 January, open interest in the contract – the world’s most widely traded international renminbi futures – reached a notional US$18.5 billion, a single-day record high.

Open interest in SGX INR/USD Futures achieved a daily record of 167,221 lots on 26 January on increased portfolio hedging, ahead of the Indian government’s February announcement of its interim budget.

Robust growth in commodity derivatives suite

Commodity derivatives traded volume climbed 82% y-o-y in January to 5.2 million. Benchmark iron ore derivatives volume jumped 88% y-o-y to 4.7 million contracts, while forward freight agreement (FFA) volume gained 27% y-o-y. The unique SGX Commodities offering enables market participants to risk-manage both cargo and freight on a single liquid and capital-efficient platform.

The volume of SGX SICOM Rubber Futures, the global pricing bellwether for natural rubber, rose 60% y-o-y to 247,091 contracts. Petrochemical derivatives volume more than trebled y-o-y.

Securities turnover grows

Securities market turnover value on SGX Securities increased 8% m-o-m in January to S$20.6 billion, a five-month high. Singapore’s equities market remained the second-most-actively traded in Southeast Asia, with net buying by retail investors across index, real-estate investment trusts (REIT) and small- and mid-cap stocks. The benchmark Straits Times Index (STI) declined 2.7% m-o-m to 3,153.01.

The market turnover value of exchange-traded funds (ETF) gained 5% m-o-m in January to S$291 million. During the month, Singapore’s first active ETF was listed with assets under management (AUM) of S$37 million. The Lion-Nomura Japan Active ETF, managed by Lion Global Investors and Nomura Asset Management Singapore, offers investors exposure to a diversified portfolio of 50 to 100 Japanese companies. Since launch, the ETF has attracted new net inflows of S$10 million.

Turnover of structured warrants and daily leverage certificates (DLC) climbed 57% m-o-m in January to S$721 million. The number of unique active accounts trading structured warrants grew 43% m-o-m, the highest since July 2021.

SGX Securities welcomed Prosper Cap Corporation Limited to Catalist in January. With a portfolio of 17 hospitality assets in the United Kingdom, the company’s core activities include investing in and managing the operations of hospitality and lodging-related businesses.

Bond-listing highlights

On SGX Fixed Income, Asia’s leading international bond marketplace, the amount issued from 60 new bond listings stood at S$24.3 billion in January. These included a US$2.05 billion three-tranche bond offering by the Republic of Indonesia; a US$2 billion three-tranche bond offering by The Export-Import Bank of Korea, which includes a three-year sustainability tranche; a JPY200 billion dual-tranche convertible bonds by Daiwa House Industry Co.; and US$1.04 billion perpetual subordinated notes by Sumitomo Life Insurance Company.

The full market statistics report can be found here.