Investing.com - Singapore Exchange Ltd. (SGX:S68) shares gained after Morgan Stanley reported strong May trading volumes and turnover velocity that exceeded the firm's estimates, with market structural reforms expected to provide further support.
Turnover velocity picked up to 56% in May from 48% in April, matching March's level and remaining well above the 12-month run rate, Morgan Stanley said. Velocity in fiscal 2026 to date stands at 44%. The firm said it expects the "Value Unlock" program, market structural reforms, the launch of the Global Listing Board and Singapore's low-beta market status to remain positive catalysts for the exchange.
Institutions were net buyers of small- and mid-cap stocks for the fifth consecutive month. Momentum in small- and mid-cap stocks excluding real estate investment trusts continued to accelerate, as average daily value rose 24% month-over-month and more than four times year-over-year.
Derivatives volumes increased 1% month-over-month and 21% year-over-year in May, driven by both fixed income, currencies and commodities and equity derivatives. Equity derivatives volumes grew across the board, led by A50 and Singapore-related contracts. Strong growth in FICC derivatives was led by CNH, INR and KRW foreign exchange futures, while iron ore derivatives volume fell 6% month-over-month.
The launch of the Global Listing Board is targeted for end-June 2026, and the next batch of equity distribution platform managers is expected to be appointed around mid-2026. Open interest fell 5% month-over-month but rose 10% year-over-year.