SGX September trading rises from last year but eases from August

Singapore Exchange’s September securities turnover rose 27% from a year earlier to S$42.2 billion, while slipping from August as the local share market paused after a record rally, The Business Times reported.

The newspaper’s October 12 account of SGX’s announcement puts September trading across 22 trading days at 2.5% below August’s S$43.3 billion. Securities daily average value was S$1.9 billion, up 27% year on year but down 11% month on month.

Turnover measures the value changing hands during a period. A daily average accounts for the trading days in that period, so its monthly percentage change can differ from the change in the total. Both measures showed growth against the previous September and a decline against August.

The Straits Times Index ended September at 5,675.88 points, down 1% from August but up 32% from a year earlier. The benchmark share index had reached successive record highs during August.

The FTSE ST Real Estate Investment Trusts Index dropped 6% month on month to 623.91. Real estate investment trusts hold income-producing property or related assets, letting investors participate through the trust rather than buying a building directly. The FTSE ST Small Cap Index, covering smaller companies, fell 2% to 315.35.

SGX’s own share price initially rose as much as 3.7% on October 12, reaching S$21.49 at 3 pm. It closed at S$20.73, a gain of 0.4%, or S$0.09, for the day.

Total derivatives trading rebounded against August, rising 10% to 29.8 million contracts. It was nevertheless 2% lower than a year earlier. Daily average derivatives volume rose 7% month on month to 1.4 million contracts and was flat year on year.

Derivatives link contractual payments to prices, rates or other references. Futures are one form, setting terms for a later transaction or cash settlement. Their activity is measured here in contracts, unlike securities turnover, which is measured in Singapore dollars.

Currency derivatives were particularly strong against the previous September: total volume increased 53% to 9.6 million contracts. US-dollar/offshore Chinese-renminbi futures volume rose 47% to 4.87 million contracts, Indian-rupee/US-dollar futures rose 59% to 3.89 million, and Korean-won/US-dollar mini futures more than doubled to 732,267.

SGX STI Futures volume more than doubled from August to 75,477 contracts. MSCI Singapore Index Futures volume reached 1.07 million, with open interest of 202,745 contracts at month end. Open interest counts outstanding contracts; it differs from the number traded during the month.

In commodities, SGX cleared 4.6 million IODEX Iron Ore Futures contracts. Total SICOM rubber derivatives volume increased 69% year on year to 455,327 contracts.