SGX’s December Turnover, FX Retreat on Subdued Volatility

The SGX's latest metrics were lower across the board, shackled by a lack of market drivers in December.

The Singapore Exchange (SGX) has reported its aggregated volumes across its derivatives and commodities business for the month ending December 2016, having exhibited a sizable pullback MoM across its securities and derivatives operations.

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The latest results and retreat in monthly volumes can be primarily attributed to a decrease in volatility in world markets. While November featured the election in the US and one of the wildest trading periods of the year, December was far more subdued, lacking any market drivers as well as the onset of the holidays in the Western world.

In looking at SGX’s latest turnover figures however, the group reported its securities volumes at $14.5 billion (S$20.9 billion) in December 2016, down -28.7% MoM from $20.3 billion (S$29.3 billion) in November 2016.

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This decline was virtually universal across all retail and institutional exchanges, with December failing to capture the activity seen in November. The December 2016 figures did indicate a much better performance over a yearly timeframe, relating to a rise of 23.0% YoY from December 2015.

Moreover, the SGX’s daily average value of trading in the month of December 2016, comprised of a total of 21 trading days, yielded $690.8 million (S$996.0 million), falling by a factor of -23.4% MoM from $901.5 million (S$1.3 billion) in November 2016 – by extension, the average daily values of trading were higher by a 29.0% YoY since December 2015.

Another area of focus was seen across the SGX’s total market capitalization, which during December 2016 climbed to $642.3 billion (S$926.0 billion), nearly unchanged MoM from $640.4 billion (S$923.3 billion) in November 2016. This figure encompassed the total market cap for all 757 listed companies on the SGX.

FX in Retreat MoM 

SGX also resumed a recent downward trend in its derivatives business, which was pointed lower in December 2016. More specifically, December 2016’s volumes fell to 13.3 million contracts traded, vs. 16.6 million contracts in November 2016, or -19.9% MoM. This was also slightly higher when measured against 2015, having edged lower by -8.0% YoY from December 2015.

Looking at equity index futures, volumes at the SGX were on the decline in December 2016. The overall volume fell to 11.1 million contracts in the month, which justified a decline of -13.3% MoM from 12.8 million contracts in November 2016, but climbing 10.0% YoY from December 2015.

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