SGX securities trading value climbs 35% on year in August on retail buying, STI rally
The total securities market turnover is also up, but overall derivatives activity registers a slight pullback
In August, the securities market on the Singapore Exchange (SGX) saw a significant 35% increase in daily average trading value (SDAV) compared to the previous year, reaching S$2.2 billion. This surge was fueled by retail interest in real estate investment trusts (REITs) and small to mid-cap stocks, along with a strong rally in the Straits Times Index (STI).
The total securities market turnover for the month rose by 29% year on year to S$43.3 billion. Retail investors contributed to the increased activity, with a 22% month-on-month rise in REIT purchases and an 11% increase in small and mid-cap stocks. Overall derivatives activity saw a slight decline. Despite this, equity futures experienced localized strength, with SGX SGX STI Futures recording more than double the DAV month-on-month, with open interest hitting a record S$49.5 million notional.
SGX MSCI Singapore Index Futures also saw a record notional open interest of S$11.8 billion at month-end. In foreign exchange derivatives, dollar weakness led to a 47% year-on-year increase in traded volume, with the SGX USD/CNH FX Futures notional DAV surging 43% year on year to US$19.7 billion. The STI continued its upward trend, setting new record highs in August, closing the month at 5,755.36, up 35% from the previous year.
The turnover in STI constituents increased by 44% year on year to S$1.5 billion, driven by both institutional and retail flows.
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