SGX’s January Volumes See Mixed Performance, FX Futures on the Rise

SGX's volume gains were few and far between, though FX futures were higher on a MoM and YoY basis.

The Singapore Exchange (SGX) has released its monthly volumes across its derivatives and commodities business for the first month of the new year, which refused to move out of a tight consolidation from last month. Its stagnated volumes across its securities and derivatives operations are an exception in the industry, as many other regional institutional venues experienced some level of decline on a month-over-month basis.

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SGX’s lack of turnover statistics in January 2017 also came despite an uptick in global volatility after a seasonal slowdown in markets during December. Moreover, the inauguration and beginning of Donald Trump’s administration in the US had created a risk-off environment, which hurt other venues’ volumes such as the NZX and ASX.

In looking at SGX’s latest turnover figures however, the group again reported its securities volumes at $14.7 billion (S$20.9 billion) in January 2017, unchanged month-over-month from $14.7 billion (S$20.9 billion) in December 2016. The January 2017 figures did indicate a lower performance over a yearly timeframe, relating to a decline of -10.0 percent year-over-year from January 2016.

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Additionally, the SGX’s daily average value of trading in the month of January 2017, comprised of a total of 20 trading days (compared to 21 in December), yielded $740.0 million (S$1.05 billion million), rising by a factor of -5.1 percent month-over-month from $702.1 million (S$996.0 million) in December 2016 – by extension, the average daily values of trading were lower by a -10.0 percent year-over-year from January 2016.

Looking further to SGX’s total market capitalization, during January 2017, this statistic climbed to $678.7 billion (S$963.0 billion), good for a growth of 4.0 percent month-over-month from just $652.8 billion (S$926.0 billion) in December 2016. This figure encompassed the total market cap for all 759 listed companies on the SGX, picking up two listings since the previous month.

FX a Lone Bright Spot

SGX extended its recent downward trend in its derivatives business, which again ticked lower in January 2017. More specifically, January 2017’s volumes fell to 11.7 million contracts traded, vs. 13.3 million contracts in December 2016, or -12.0 percent month-over-month. This was also sizably lower when measured against 2016, having retreated lower by -34.0 percent year-over-year from January 2016.

Finally, SGX’s total FX futures were reported at 584,307 contracts in January 2017, which was the one area of growth experienced at the exchange, justifying a climb of 6.0 percent month-over-month. Additionally, FX futures also were able to notch an advance of 12.0 percent year-over-year from January 2016.

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