SGX’s derivatives volume shows some signs of life

The volatile Chinese equities market is boosting earnings.

The local bourse’s derivatives volume is on its way to recovery as it jumped to 675,000 contracts in November after it fell to a low of 594,000 in October.

According to RHB Research, as a result, the first 5 months of FY16 are averaging 747k contracts.

RHB Research attributed this jump to the volatility in the Chinese equities markets which could lead to increased volumes traded in the futures index.

In contrast, RHB says the securities market turnover was unexciting.

“For the period of 1st Oct 2015 until 11th Dec 2015, the Securities Average Daily Value (SADV) was SGD965m, lower than 1QFY16’s of SGD1.19bn. We are assuming FY16 SADV of SGD1.17bn, on the back of slightly stronger volumes as we go into early 2016,” RHB said.
 

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