SGX Reports Solid FX Volumes for August 2021

The Singapore Exchange (SGX), the country’s paramount exchange operator, has released its monthly volumes across its derivatives and commodities segments for August 2021.

Markets experienced a seasonal lull, with low volatility and a lack of market drivers serving as the primary culprit. Additionally, with the Western world observing multiple holidays, Asian markets seemingly ground to a halt by the month’s end, not unlike other global exchanges in the US and Europe.

In terms of SGX’s latest turnover figures, the group reported its securities volumes at S$26.3 billion in August 2021. On a monthly basis, this figure reflected a gain of 5 percent from S$25 billion in July 2021.

Of note, SGX saw a total of 21 trading days, the same as it had been in July. The results are somewhat weaker than other institutional venues in August, nearly all of which saw a consolidation of volumes.

Furthermore, the SGX’s daily average value of trading rose in August 2021, having yielded S$1.3 billion, up month-over-month from S$1.19 billion in July.

“Institutional investors increased their portfolio risk management amid uncertainty over China’s outlook, after manufacturing activity in the world’s second-largest economy contracted in August for the first time in nearly a year-and-a-half,” the exchange explains.

FX volumes shine

SGX’s FX segment was upbeat up for a second month in August. Total FX volumes were reported at 2 million contracts, indicating a rise of 12 percent year-over-year. In terms of specific instruments, the volume of SGX INR/USD Futures climbed 9 percent to 1.1 million contracts, lifting total foreign exchange (FX) futures traded volume.

Meanwhile, total commodity derivative volume gained 10% from a year earlier to hit 2.6 million contracts last month.

SGX-listed companies continued to tap the equity capital markets with secondary funds raised of S$377 million in August. The amount issued from 42 new bond listings on Asia’s leading marketplace stood at S$20.9 billion.