SGX securities turnover rises 1% in May, volume down 18%
[SINGAPORE] The total securities market turnover value on the Singapore Exchange (SGX) edged up 1 per cent year on year to S$26.9 billion, supported by institutional hedging activity and continued demand for safe-haven and dividend-yielding stocks.
The securities daily average value rose 6 per cent on year to about S$1.3 billion.
May's total market turnover volume dropped 18 per cent to 22.3 billion shares, from 27.3 billion shares in the same month the year before, said the bourse operator in its monthly market statistics report on Monday (Jun 9).
One bright spot was derivatives, where the traded volume increased 6 per cent to 25.4 million contracts in May. Derivatives daily average volume climbed 11 per cent to 1.3 million contracts.
The Straits Times Index (STI) in May came close to the all-time high posted in March after it advanced 1.6 per cent month on month to 3,894.61. On Mar 28, it rose above 4,000 for the first time. May's performance was due to 'Singapore's appeal to investors as a flight-to-quality venue', said SGX.
Its report also stated that market turnover value of exchange-traded funds (ETF) increased 22 per cent year on year in May to S$376 million, as market participants continued to favour safe-haven and higher dividend-yielding stocks.
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The SPDR Gold Shares ETF recorded its 12th consecutive month of gains, bringing net inflows over the one-year period to S$500 million.
Meanwhile, net inflows into the two STI ETFs crossed S$60 million in May – the highest since September 2020.
The report highlighted the SGX FTSE China A50 Index Futures as a standout performer, with trading volume rising 4 per cent year on year to 7.8 million contracts. SGX said the SGX Equity Derivatives bellwether remains the world's most liquid international futures contract for Chinese equities.
The bourse operator listed the won as one of the forex futures outperformers. The daily average value of the SGX KRW/USD FX Futures increased 143 per cent year on year to a monthly record of 38,294 lots, or a notional US$685 million, in May.
It said this was in part due to the unprecedented volatility in the Taiwan dollar, which spilled over to emerging Asia currencies – notably the Korean won.
The SGX KRW/USD Mini Futures similarly attracted a significant influx of new participants, as did SGX USD/CNH Options, which posted a single-day open interest record of 8,189 lots, or a notional US$818 million.
In commodities, traded volume in petrochemicals derivatives more than doubled year on year in May to the equivalent of 4.4 million metric tonnes (MT), with average monthly open interest surpassing three million MT amid a rebound in physical cargo prices.
On May 13, SGX Commodities cleared a record single-day volume of 500,000 MT in petrochemicals contracts.
SGX said in its monthly report that the Singapore stock market continued to stand out for its 'quality and value to investors', with strong institutional hedging activity as investors recalibrated portfolios in response to ongoing market uncertainty.
As at 3.59 pm on Thursday, shares of SGX were up 0.6 per cent or S$0.08 at S$13.86.
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Lee estimates that 30 to 40 new investors explore the model annually, and more than half of the company's clients are young graduates. High selling prices are a key factor in attracting young graduates to this farming venture. Japanese muskmelons retail for RM168 per fruit, and golden melons are sold at RM188 for a pack of six. Imported Arus muskmelons from Japan cost twice as much as locally grown melons in Malaysia. PHOTO: MONO PREMIUM MELON Sofian says that despite its RM168 price tag, Mono's muskmelon offers considerable value compared to imported Japanese varieties, which typically cost RM300 to RM400 at high-end city supermarkets. He addresses potential biases towards imported versus locally produced melons by clarifying that local growers are not aiming to compete with importers or large grocers selling premium imported produce. Instead, their goal is to offer consumers more choices. 'In terms of muskmelons, the taste is comparable. But buying locally, you know where your fruit comes from and it might be half the price. Plus, you'll have the opportunity to experience the harvesting process yourself – that's some added value for consumers.' Premium salad greens just across the bridge In Johor Bahru, just across the border from Singapore, a new kind of farm is rising – one without soil, sunshine, or even open skies. Spanning 52,000 sq ft, the smart indoor vertical farm is the result of a cross-border collaboration between Singapore's Archisen and Malaysia's FarmByte, under Johor Corporation Group. Scheduled to produce more than 306,000 kg of leafy greens annually – including crystal lettuce, mustard greens and ice plants – it is designed to supply both Malaysian and Singaporean markets with clean, pesticide-free produce. While vertical farming is not a new concept, it took off in Malaysia only in the last few years. 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'Harvested vegetables are promptly refrigerated, with the cold chain meticulously maintained from storage through transport to the store, thereby minimising degradation from farm to table.' Why local luxury matters MeMe Farm thrives with 1,700 vanilla vines and hundreds of staghorn ferns. PHOTO: TAN AI LENG, BT The rise of premium local crops – from vanilla and melons to pesticide-free greens – is not just about food trends. It speaks to a deeper issue: a growing dependence on food imports. Professor Emeritus M Nasir Shamsudin from Universiti Putra Malaysia's Faculty of Agriculture says most of the countries in South-east Asia are increasingly reliant on imports, especially for meat, fruits and vegetables. For instance, Malaysia's food trade deficit widened alarmingly from RM21.8 billion in 2020 to RM31 billion in 2022. The figure was RM4.9 billion in 2000. The growing gap highlights a structural problem: rising demand and stagnant domestic production. Prof Nasir notes that agritech is redefining farming in Malaysia and other countries, shifting the focus from land expansion to productivity and quality. It complements conventional agriculture by enabling small-scale farms to grow premium, previously imported crops year-round. 'This approach reduces food import dependence, creates new revenue streams for small and medium enterprises (SME), and is slowly changing mindsets – positioning farming as an innovation-driven, high-value enterprise rather than a low-yield, labour-intensive livelihood of the past,' he says. He stresses that technology in agriculture is no longer a luxury but a necessity in view of land scarcity. And especially for SMEs, it is a powerful tool to boost their productivity and quality. 'Systematic farming, a controlled environment and hydroponics are not just about increasing yields,' he says. 'It is about growing smarter and producing higher-value crops with better consistency, quality and resource efficiency.'
