In cash equities, securities daily average value (SDAV) in the Singapore equities market rose 12% month-on-month (m-o-m) in August to $1.2 billion against a 5.9% m-o-m decline in the benchmark Straits Times Index (STI).
According to the SGX, volatility notably heightened following the US Fed’s decision in July to cut interest rates – the first reduction since the 2008 global financial crisis.
Global growth concerns were also noted to have dominated the markets, with the ongoing US-China trade tensions, a yield-curve inversion in the US bond market and Brexit uncertainties being interpreted by some participants as a recession signal.
Total commodity derivatives surged 91% y-o-y to a total of 2.74 million contracts. Notably, iron ore derivative trading volumes hit a record high of 2.48 million contracts, on the back of more international market participants adopting the commodity as a macro barometer for Asia’s growth.
See also: S’pore GDP growth ‘likely to slow’ in 2H2025 but core inflation ‘should remain subdued’: MAS
In the foreign exchange (FX) markets, SGX INR/USD Futures trading volumes jumped 61% y-o-y in August to 1.6 million contracts, an all-time high, amid headwinds for the Indian rupee. The renminbi weakened with the lack of progress over trade talks between Washington and Beijing, falling below 7 against the dollar.
SGX USD/CNH Futures volumes climbed 50% y-o-y to 965,241 contracts, setting two record trading days during the month. Meanwhile, total FX futures volumes on SGX – Asia’s biggest exchange for currency derivatives – rose 59% y-o-y to 2.62 million contracts.
SGX Nikkei 225 Index Futures, SGX Nifty 50 Index Futures and MSCI Taiwan Index Futures all recorded y-o-y trading volume increases of 39%, 37% and 23% respectively. SGX’s offering of equity-index derivatives increased 14% y-o-y to 16.7 million contracts.
See also: S’pore 2025 growth ‘expected to slow’ amid ‘challenging’, ‘uncertain’ trade environment: Gan
Global REIT indices generated gains amid the lower interest rates, and Singapore was no exception. Two REITS have been rewarded with key index inclusion from 23 September - Mapletree Commercial Trust will join the STI, while Frasers Centrepoint Trust will be part of the FTSE EPRA/NAREIT Global Real Estate Index Series (Global Developed Index).
Market turnover value of Daily Leverage Certificates (DLC) rose 52% m-o-m in August to $114 million as active investors looked to capture short-term opportunities. Market turnover value of exchange traded funds (ETF) rose 23% m-o-m in August to S$231 million, aligning with the growing preference among investors for passive investing strategies.
As at 12.31pm, shares in SGX are trading six cents lower at $8.48.
