• Iron ore lifts commodity derivatives volume to four-month high
• Growth in secondary fundraising despite challenging market conditions

Singapore Exchange (SGX Group) today released its market statistics for July 2022. Growth in iron ore trading activity lifted commodity derivatives volume to a four-month high, while secondary fundraising increased despite challenging market conditions.

Derivatives traded volume across multiple asset classes rose 1% year-on-year (y-o-y) in July to 20.5 million contracts, with derivatives daily average volume (DDAV) up 4% y-o-y. Commodity derivatives volume climbed 57% y-o-y to 3.6 million contracts, the highest since March. Benchmark iron ore derivatives volume gained 68% y-o-y to 3.3 million contracts on the back of heightened volatility, as market participants reacted to developments in China’s property sector. Iron ore remains an efficient macro proxy and the SGX Commodities solution enables participants to express their views on the broader economy. The volume of SGX SICOM rubber futures, the world’s pricing bellwether for natural rubber, increased 18% y-o-y to 148,290 contracts.

Foreign exchange (FX) futures volume on SGX FX rose 16% y-o-y in July to 2.5 million contracts, or US$149 billion on a notional basis. The volume of SGX USD/CNH Futures – the most widely traded international RMB futures – climbed 34% y-o-y to 1.1 million contracts on increased risk-management demand, as investors focused on China’s economic outlook.

SGX Equity Derivatives volumes declined on reduced volatility, with key stock indices buoyed by steady corporate earnings and easing expectations for further significant U.S. interest-rate hikes. SGX FTSE China A50 Index Futures volume dropped 17% y-o-y and SGX MSCI Singapore Index Futures volume fell 13% y-o-y. Among the gainers, SGX Nifty 50 Index Futures volume grew 13% y-o-y in July to 2.3 million contracts, while SGX Nikkei 225 Index Futures volume was up 7% y-o-y at 1.1 million contracts.

STI Advances

In Singapore, the benchmark Straits Times Index (STI) advanced 3.5% month-on-month (m-o-m) to 3,211.56 in July. Total securities market turnover value stood at S$18 billion, with securities daily average value (SDAV) at S$901 million – down m-o-m, but showing more resilience than other regional markets. Stock investors were broadly on the sidelines for most of July amid continued concern over the path of the world economy, before a pickup towards month-end. The U.S. reported a second consecutive quarter of negative growth, while the International Monetary Fund cut its forecasts for major economies including China, citing “an increasingly gloomy and uncertain outlook”.

Secondary Fundraising Grows

SGX-listed companies continued to tap the equity capital markets in July, with secondary fundraising of almost S$2.05 billion, up 141% y-o-y. This was the largest amount since June 2021. Mapletree Commercial Trust led with a rights issue, while four other companies successfully raised funds via placements.

During the month, SGX Securities welcomed the secondary listing of Emperador Inc. on Mainboard. The company, which is primary listed in the Philippines, is a leading global integrated manufacturer, bottler and distributor of brandy, Scotch whisky and other alcoholic beverages.

On SGX Fixed Income, Asia’s leading international bond marketplace, the amount issued from 176 new bond listings totalled S$45.9 billion in July, the highest since April. Highlights for the month included a US$1.9 billion three-tranche senior notes offering by Nomura Holdings, NTT Finance Corp.’s US$1.5 billion three-tranche Green bonds, TSMC Global Ltd.’s US$1 billion dual-tranche bond offering, as well as Housing & Development Board’s S$1.1 billion five-year Green bond.

The full market statistics report can be found here.