SGX Discloses Weak Volumes for December, FX Segment Shines

The Singapore Exchange (SGX) has released its monthly volumes across its derivatives and commodities segments for December 2018. The latest securities and derivatives volumes cratered during the final month of the year amidst subdued trading that saw one of its lowest readings of 2018.

Markets experienced a seasonal lull, with low Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term and a lack of market drivers serving as the primary culprit. Additionally, with the Western world observing multiple holidays, markets seemingly ground to a halt by the month’s end, not unlike other global exchanges in the US, Europe, and Asia.

In terms of SGX’s latest turnover figures, the group reported its securities volumes at $12.35 billion (S$16.7 billion) in December 2018. This figure reflected one of SGX’s lowest readings of 2018, well below November 2018 – on a monthly basis this reflected a decline of 22 percent as well as 13 percent year-over-year from December 2018.

Of note, SGX saw a total of just 20 trading days, relative to 21 in November. The results are somewhat weaker than other institutional venues in December, nearly all of which saw a consolidation of volumes.

Furthermore, the SGX’s daily average value of trading in the month plunged in December 2018, having yielded just $619 million (S$837 million). This was a fall of 19 percent month-over-month from S$1.03 billion in November. Average daily values of trading were also lower by 13 percent year-over-year from December 2017 as well.

FX volumes shine

SGX’s total market capitalization during December 2018 was reported at $693.0 billion (S$936.87 billion), almost unchanged month-over-month from November 2018. This figure encompassed the total market cap for all 741 listed companies on the SGX.

SGX’s FX segment was heating up for a second month in December. Total FX volumes were reported at 1.76 million contracts in December 2018, indicating a rise of two percent month-over-month from 1.72 million contracts in November, which was amongst the highest readings at SGX in 2018.

In addition, FX futures in December saw a strong yearly rise of 87.0 percent year-over-year from December 2017. In terms of specific instruments, the USD/CNH continued with its strong performance in H2 2018, rising to 654,125 contracts in December 2018, up 212 percent year-over-year.