• SDAV jumps as Singapore’s benchmark STI sets consecutive record highs
• U.S. trade tariffs drive derivatives activity across asset classes

Singapore Exchange (SGX Group) released its market statistics for February. Singapore’s stock benchmark rose to new highs to lead the region, while uncertainties over the economic impact of the new U.S. administration’s trade policies drove derivatives trading activity across asset classes.

Securities market turnover value increased 42% month-on-month (m-o-m) in February to S$29.6 billion, while securities daily average value (SDAV) also gained 42% m-o-m to about S$1.5 billion – the highest since May 2022. Derivatives traded volume climbed 17% year-on-year (y-o-y) to 25.6 million contracts, with derivatives daily average volume (DAV) up 8% y-o-y at 1.4 million contracts.

Key highlights:

• STI trumps regional peers: The bellwether Straits Times Index (STI) set record highs on three consecutive days during the month, reaching 3,934.09 on 19 February. For the month, the STI advanced 1% m-o-m, outperforming ASEAN peers with year-to-date 2.7% price return and 3.1% total return.
• Growth in trading velocity lifts securities turnover: On SGX Securities, the market turnover value of structured warrants and daily leverage certificates (DLC) rose to S$932 million in February, more than doubling on both a m-o-m and y-o-y basis. Turnover of exchange-traded funds (ETF) also gained from an increase in trading velocity, up 45% y-o-y at S$407 million. ETF assets-under-management (AUM) climbed 27% y-o-y to S$13.5 billion. This was boosted by SPDR Gold Shares posting a ninth straight month of net inflows as its local AUM surpassed S$2 billion, as well as the launch of the third South-bound ETF – CMF iEdge Emerging Asia Select 50 (QDII) ETF – under the China-Singapore ETF Link.
• Global institutional choice for China access: SGX FTSE China A50 Index Futures traded volume rose 18% y-o-y in February to 9.4 million contracts, driven by round-the-clock trading activity amid a focus on additional U.S. trade tariffs on China. DAV in the overnight sessions surged 75% y-o-y to 82,741 contracts. Open interest (OI) in the contract – the world’s most liquid international futures for Chinese equities – increased 24% y-o-y to a notional US$13.8 billion, underscoring the position of SGX Equity Derivatives as the trusted venue for global institutions managing risk in China A-shares.
• More buyside support for Singapore equities: OI in SGX MSCI Singapore Index Futures gained 80% y-o-y to a record notional US$6.1 billion, as the global buyside community gravitated towards Singapore equities, which have outperformed major developed markets in the region on a risk-adjusted basis. DAV of the contract climbed to US$1.6 billion, the highest in three-and-a-half years, with elevated trading activity around the full-year earnings release of the three local banks.
• Tariff uncertainties bolster FX risk management: Concern over the impact of U.S. trade tariffs fuelled volatility in foreign exchange (FX) markets, buffeting both safe-haven and risk currencies across Asia-Pacific. Total futures traded volume on SGX FX rose 72% y-o-y in February to 6.1 million contracts – an all-time high – as SGX INR/USD FX Futures volume jumped 87% y-o-y to a record 2.5 million contracts. The volume of SGX USD/CNH FX Futures, the world’s most widely traded international renminbi futures, increased 65% y-o-y to 3.2 million contracts. DAV of SGX KRW/USD FX Futures grew 11% m-o-m to US$379 million, while month-end OI rebounded 25% m-o-m to US$430 million.
• Supply concerns fuel hedging in commodities: Benchmark iron ore derivatives traded volume gained 2% y-o-y in February, or 13% m-o-m, to 4.4 million contracts on the back of increased hedging and market activities around physical-supply risks related to the weather. This lifted total volume on SGX Commodities by 3% y-o-y to a three-month high of 5 million contracts. Petrochemical derivatives volume climbed 90% y-o-y to a record high of 2.9 million metric tonnes, driven by supply uncertainties in upstream oil markets and amid a growing base of participants. For February, OI in paraxylene contracts averaged 1.4 million metric tonnes, a record for a second month.

The full market statistics report can be found here.

Source: SGX