SINGAPORE: Singapore Exchange (SGX) reported its July 2020 market statistics. Markets continued to be focused on the ongoing reopening of global economies and news of fresh waves of COVID-19 infections in some countries.

Equity market activity remained higher than a year earlier but moderated from a strong June. Equity index futures trading was more active as risk management remained in focus. Iron ore derivatives reflected optimism about China’s recovery and a broader Asian economic rebound from the pandemic.

Total securities market turnover rose 5% year-on-year (y-o-y) to S$25.5 billion; securities daily average value (SDAV) was 15% higher y-o-y at S$1.2 billion. ETF turnover more than doubled y-o-y to S$444 million on institutional and retail investor interest, particularly around the SPDR Gold ETF – which was driven by surging gold prices – and STI ETFs. Assets under management of SGX-listed ETFs grew 20% to S$6 billion.

During the month, medical services group Singapore Paincare Holdings joined our Catalist board, bringing total equity funds raised to S$522 million, up 6.7%. Bond listings improved from June amid more certainty about the outlook for interest rates. A total of 72 new bonds raised S$35.5 billion though this was less than pre-COVID-19 levels a year earlier.

Risk management activities buoyed equity index futures volumes. Total financial derivatives volume was 26% up y-o-y at 23.8 million contracts with the increase coming mostly from equity index futures. The FTSE China A50 index futures traded 76% more contracts y-o-y at 12.8 million contracts. The Nifty 50 Index futures saw a 19% y-o-y increase to 2.1 million contracts while the MSCI Taiwan Index futures experienced a 4% rise in volume to 1.8 million contracts.

The SGX FTSE Taiwan Index futures contract began trading and achieved total volume of 82,048 contracts in two weeks with participation from more than 60 trading entities. Together with the MSCI Taiwan Index futures, SGX has 99.8% of volume and open interest market share across all offshore Taiwan equity index price return futures.

FX derivatives volume moderated due to a dip in volatility with total volume a fifth lower y-o-y at 1.7 million contracts, and INR/USD futures volume a quarter down to 923,861 contracts.

Commodities saw a 1% y-o-y gain in volume to 2.1 million contracts amid China’s reopening and continued supply chain disruption. Iron ore derivatives had 2% more volume y-o-y at 1.8 million contracts while forward freight derivatives saw an 8% rise in volume to 102,740 contracts.