Posted on April 8, 2025, by Niftynews
The SGX Securities turnover reached S$29.7 billion in March, marking a 25% year-on-year increase despite a 23% decline in trading volume. This sharp rise in turnover value, combined with the record performance of the Straits Times Index (STI), underscores the growing investor confidence in Singapore’s financial market. However, the decline in the volume of traded shares suggests a shift in investor behavior, with more value being traded per share.
SGX Securities Performance Overview
The total SGX Securities turnover showed a strong upward trend in March, with the daily average value hitting a three-year high at S$1.5 billion, up 25% from the previous year. This growth in turnover value signals that investors are increasingly active in Singapore’s securities market, despite the decrease in the volume of shares traded. This decline in volume, however, may reflect a growing preference for higher-value trades, indicating more confidence in the overall market.
Moreover, SGX’s derivatives market also showed significant growth, with an increase of 14% in total volume traded. The daily average volume climbed by 12%, signaling a consistent demand for SGX’s derivative products.
Straits Times Index (STI) Performance
The Straits Times Index (STI) performed strongly in March, surpassing the 4,000-point mark for the first time on March 28, 2025. Over the January-to-March quarter, the STI achieved a 5% gain, outperforming other stock benchmarks across ASEAN. This reflects the strength of the Singapore market amidst regional volatility.
Investor Interest in Small and Mid-Cap Stocks
SGX noted that small and mid-cap stocks continued to see positive interest in March, with institutional investors continuing to allocate funds into these segments. This signals a shift towards higher growth opportunities in the broader market, especially as investors look for value in smaller companies that could outperform larger-cap stocks in the long term.
SGX’s Expanded Product Offering
SGX continued to broaden its product offerings in March, including the launch of three Hong Kong-based underlying assets for Singapore Depository Receipts (SDRs). The Xiaomi, Meituan, and Ping An SDRs were introduced on March 5, allowing investors more exposure to the Hong Kong market.
Furthermore, the Lion-China Merchants CSI Dividend Index ETF was listed on March 28, increasing the total number of ETFs under the SGX-China product link to nine. This expansion of ETF offerings demonstrates SGX’s commitment to broadening its product lineup to meet the needs of diverse investors.
Equity Derivatives & Forex Performance
The performance of SGX’s equity derivatives continued to impress, with India equity derivatives, such as the Gift Nifty 50 Index Futures, increasing by 10% year-on-year to 2 million contracts. These contracts saw increased activity due to the growth of Indian equities, indicating that SGX’s equity derivatives offerings are gaining traction.
In the foreign exchange (FX) market, the volume of SGX INR/USD FX Futures surged by 80% compared to the previous year, reflecting growing demand for FX futures. The total volume of FX futures increased by 53% in March, with an impressive rise in INR/USD FX Futures volume.
Commodities and Petrochemical Volume Growth
SGX also saw a 47% increase in the trading volume of petrochemical contracts, such as benzene, during March. This rise in trading volume reflects a higher demand for commodities amid price volatility in physical markets. Additionally, SGX’s dairy derivatives reached record levels, with a 82% year-on-year growth in daily average volume.
Final Thoughts on SGX Securities Turnover
Overall, SGX Securities turnover saw impressive growth, with strong performances in the equities, derivatives, and commodities markets. However, the decline in trading volume points to a more concentrated market environment, with larger value trades being executed. Investor confidence in the SGX remains high, particularly in small and mid-cap stocks, and the continued expansion of SGX’s product offerings, including ETFs and SDRs, positions it well for continued growth.
SGX’s strong performance in March and the first quarter of 2025 underlines its critical role as a leading exchange in Asia, offering a wide range of investment products across multiple asset classes.
