SGX's September securities daily average value fall as derivatives provide support

Singapore Exchange (SGX) daily average value for securities in the month of September slid 13 percent compared to August, and dropped 11 percent from a year ago to S$971 million, SGX’s data showed on Monday.

Total securities market turnover value for September fell 17 percent from the previous month to S$19.4 billion. Year-on-year, turnover fell by 11 percent. There were 20 trading days for September, the same days of trading for the similar period a year ago. August had 21 trading days.

Amid a sell-off seen for regional equities, the market turnover for exchange traded funds rose 12 percent year-on-year to S$188 million. Fifty-six new bond listings and one new catalist listing raised S$24.44 billion, and S$12.95 million, respectively.

As of end-September, SGX’s market capitalisation value of its 745 listed companies stood at S$974.8 billion.

Derivatives segment flat month-on-month; up 16 percent from a year ago

SGX’s derivatives volume was flattish in September compared a month ago, dipping 1 percent at 18.52 million. Year-on-year, derivatives volume gained 16 percent.

The Nikkei 225 Index Futures soared to a six-month high, up 16 percent from a month ago at 1.94 million. Other futures such as the SGX Nifty 50 Index Futures and SGX INR/USD Futures also increased in trading volume, up by 20 percent and 15 percent from a month ago, respectively.

The growth was however offset by lesser trading volume seen in the FTSE China A50 Index Futures, and SGX USD/CNH Futures, which were down from the previous month by 11 percent and 27 percent, respectively.

SGX’s CEO Loh Boon Chye had said in July the group plans to “focus on cementing (its) position as a multi-asset exchange, while growing (its) international presence and widening partnerships and networks” for the financial year of 2019.

In a press statement for the exchange’s fourth quarter results in July, SGX had said it will “continue to introduce new equities products and services, enhance its SGX Bond Pro, launch new derivative solutions such as its SGX FlexC FX futures and enhanced Titan OTC Pro platform.” The SGX plans to develop new data business capabilities and expand its steel value chain segment.

The exchange had also said that its forex derivatives business will continue to “grow strongly” and is expected to contribute positively to net profit in the next few years.

As at 4.15pm Singapore time, the SGX counter was little changed, down 0.55 percent or 4 Singapore cents, at S$7.23.