SGX derivatives daily trading volume hits six-month high in October; securities turnover rises 32%
The stronger trading activity comes amid a broad market correction during the month
In October, the Singapore Exchange (SGX) witnessed a surge in derivatives daily average trading volume, reaching a six-month high. The heightened market volatility led to increased demand for risk management, driving the derivatives daily average volume up by 8% year on year and 17% month on month to 1.6 million contracts. Total derivatives traded volume also increased, with year-on-year growth of 6% and month-on-month growth of 5% to 31.4 million contracts.
In addition to derivatives, the securities market experienced a significant rise in turnover. Turnover climbed 32% year on year and 6% month on month to S$44.8 billion across 22 trading days. The securities market value per day also grew at the same rates to S$2 billion, driven by stronger activity in index stocks and real estate investment trusts (REITs).
The broader market correction during October was primarily driven by a sell-off in technology stocks. The benchmark Straits Times Index (STI) declined by about 5% over the month, while the technology sector faced the worst decline, falling 17.3%. The weakest performer was the technology sector, which saw a substantial drop of 17.3%, while the FTSE ST Technology Index and FTSE ST Oil & Gas Index also experienced declines of 17% and 14%, respectively.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
