SGX Launches Equity Index Suite Based on Singaporean Economy

A total of eleven new indices will also help to profile underlying securities whilst offering insights into risk and performance

The Singapore Exchange (SGX) has launched a new offering of Thematic Indices, constituted by a fortified suite of equity indices under its index business and operations, SGX Index Edge, according to an SGX statement.

The SGX Index Edge was recently launched back in October 2015, granting users a comprehensive index service suite for issuers, asset managers, and investors across Asia. The Index Edge also allows SGX to more effectively profile key segments of its securities market, in essence enabling clients to build customized indices.

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Moreover, SGX’s Thematic Indices will be specifically geared towards the equity space with indices based on the real estate,healthcare, minerals, oil & gas, and maritime & offshore sectors. The SGX chose these sectors as the base of the offering given that these have traditionally been featured prominently across the SGX securities market and contribute significantly to the broader Singapore economy.

A total of eleven new indices will also help to profile the underlying securities whilst offering insights into the risk and performance attributes associated with each of the aforementioned sectors. As such, these indices will further bolster the understanding of investment opportunities for market participants.

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Another impetus behind the launch of the indices offering is the expansion of its exchange-traded-fund (ETF) market in Asia. SGX’s indices will also provide benchmarks linked to fundamental themes in Singapore in order to entice the creation of ETF products that are invested in Singapore stocks.

According to Loh Boon Chye, Chief Executive Officer (CEO) of SGX, in a recent statement on the launch: “These indices enhance SGX’s existing sector strengths and provide valuable profiling of some of the most vibrant areas in our securities market, where we see an opportunity to enhance liquidity.”

“The themes covered by these indices complement SGX’s educational initiatives as well as listings and securities strategy. This launch is an important step that supports our priority of strengthening our business and we continue to explore new ways of enhancing access to, and understanding of, our markets,” he added.

Early last month, the Singapore Exchange (SGX) released its volumes across its derivatives and commodities activities for the month ending October 2015. In terms of securities, the turnover at the SGX during October 2015 came in at $23.1 billion, up 2.7% MoM from $22.5 billion in September 2015 – across a yearly timeframe, the October 2015’s figure is also 6.0% higher YoY from October 2014.

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