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.
