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SGX market activity dropped off in June

Total value and daily average value of securities fell last month, according to latest figures from the Singapore Exchange.

SINGAPORE: Trading activity in the Singapore Exchange (SGX) took a dip during the June school holiday period.

According to a statement on Thursday (July 3), SGX's latest market statistics showed that total value of securities traded fell 12 per cent to S$20.5 billion in June from a month earlier. The decline is at a steeper 37 per cent compared to the same period last year, it added.

Daily average value in securities trading also fell to $978 million, down 40 per cent year-on-year and a decline of 16 per cent month-on-month, said SGX, but added total volume of stocks traded in the exchange rose 25 per cent to 44.3 billion shares.

Market watchers said most of the trading action last month was focused on the penny stocks segment, which is dominated mainly by small-time retail investors. This is also reflected in the trading volume on the SGX Catalist board, which rose 61 per cent from a month earlier to 11.2 billion shares in June.

Securities market turnover for SGX Chinese-listed companies was also up 18 per cent year-on-year to S$1.5 billion in June, an increase of 35 per cent from the previous month, SGX stated.

Meanwhile, market turnover for Exchange Traded Funds (ETF) fell 57 per cent year-on-year at S$2.3 billion, a decline of 3 per cent month-on-month, according to the statement.

Trading action in the derivatives market remained brisk in June. Total derivatives trading volume rose 6 per cent on-month to 8.6 million contracts. Average daily trading volume in the derivatives market increased 5 per cent month-on-month to 419,428 contracts.

Total open interest as at end of June was about 3.2 million contracts, close to the same volume as the year before, but down 9 per cent month-on-month, SGX added.

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