Singapore Exchange (SGX) has reported a robust start to its new fiscal year, with July data showing impressive growth in both securities and derivatives volumes. The exchange noted a 27% year-on-year increase in securities market turnover, reaching S$33.8b, and a 30% rise month-on-month. The securities daily average value (SDAV) also rose to S$1.47b, 11% above estimates for the first half of fiscal year 2026.
The surge in small- and mid-cap liquidity, up 94% month-on-month to S$261m, was attributed to increased retail participation and six consecutive months of institutional net buying. SGX anticipates this momentum will continue, supported by regulatory initiatives aimed at broadening equity participation beyond the Straits Times Index constituents.
In the derivatives market, volumes climbed to 29.3 million contracts, marking a 25% year-on-year increase. The derivatives daily average volume (DDAV) was 1.28 million, 7% above estimates. Notably, commodities trading hit a record 9 million contracts, driven by strong activity in iron ore, freight, and petrochemicals.
Despite these positive figures, SGX’s forward valuation appears stretched unless the July performance can be sustained. The company’s share price has risen 27% year-to-date, with a 56% increase over the past 12 months. Whilst SGX’s forward price-to-earnings ratio remains below that of its Asian peers, securities turnover lags behind.
SGX is also making strides in environmental, social, and governance (ESG) initiatives, having launched its first climate transition plan and expanded its suite of ESG products. The exchange remains a leading venue for international green, social, sustainability, and sustainability-linked bonds in the Asia-Pacific region. Looking ahead, SGX expects heightened initial public offering activity, with approximately 30 firms in the pipeline.
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