OREANDA-NEWS. In the June 2016 month-to-date, Singapore’s Straits Times Index (STI) was the third-best performing stock index among key Southeast Asian equity markets, generating a gain of 1.9%. This compares with a 2.5% MTD gain for the Jakarta Composite Index, 2.4% for the Philippine Composite Index, 1.7% for the Kuala Lumpur Composite Index, and 0.5% for the Stock Exchange of Thailand Index, all in Singapore dollar terms.

Across the Asia-Pacific region, Japan’s Topix and Nikkei 225 Index posted declines of 1.0% and 1.2% respectively in Singapore dollar terms in the MTD. The Hang Seng Index showed a gain of 0.6% in the MTD, while China’s CSI 300 Index and Shanghai Composite Index generated declines of 1.6% and 1.1% respectively, also in Singapore dollar terms.

Reflecting the trend in the Singapore stock market, the SPDR® Straits Times Index ETF and Nikko AM Singapore STI ETF were among the 10 most active ETFs in the MTD.  These ETFs were also the sixth and seventh best performers in the month-to-date, generating a total return of 1.8% and 1.4% respectively during the period.

Last Friday, a weak US jobs report – showing that America added only 38,000 jobs in May, the worst reading since 2010 – sparked lower expectations of an interest rate hike by the Federal Reserve next week.

The probability of a rate increase at the 15-16 June Federal Open Market Committee (FOMC) meeting has fallen to zero percent, down from 22% a week ago, according to fed fund futures data tracked by Bloomberg. Traders are pricing in a 58% chance the central bank will lift rates by year-end, down from more than 70% a week ago.

Further buoying investor sentiment was crude’s surge to US$50 a barrel, amid lower US stockpiles and unexpected supply disruptions from Canada to Nigeria. This also helped boost activity in Singapore’s offshore and marine stocks, with the SGX Maritime & Offshore (MOE) Index posting a gain of 6.3% in the first six sessions of June. (Click here for the Market Update).

Also adding to investors’ risk appetites were signs that China’s economy is on the mend. May exports have stabilised, while imports data, coupled with accelerating car sales, suggested domestic demand was improving.

Month-to-Date Performances

The 10 most active ETFs on SGX in the month-to-date are SPDR® Gold Shares, iShares MSCI India Index ETF, SPDR® Straits Times Index ETF, CIMB FTSE ASEAN 40 ETF, db x-trackers MSCI Indonesia Index UCITS ETF, db x-trackers MSCI Korea UCITS Index ETF (DR), db x-trackers MSCI Thailand Index UCITS ETF (DR), iShares J.P. Morgan USD Asia Credit Bond Index ETF, db x-trackers FTSE China 50 UCITS ETF (DR) and Nikko AM Singapore STI ETF.

In the month thus far, these 10 most active ETFs averaged a total return of 1.6%, taking the one-year and three-year total returns to -5.9% and 3.6% respectively. The three best performers in terms of month-to-date total returns were: db x-trackers MSCI Korea UCITS Index ETF (DR), db x-trackers MSCI Indonesia Index UCITS ETF, and CIMB FTSE ASEAN 40 ETF.

The above-mentioned ETFs saw an 10.7% YoY decrease in turnover for the month thus far, decreasing from S$51.4 million in the June 2015 month-to-date to S$45.9 million in the same period this year. This brings the total 12-month turnover to S$1.8 billion.

The three most active ETFs over the first seven sessions of June were SPDR® Gold Shares, iShares MSCI India Index ETF and SPDR® Straits Times Index ETF. 

The 10 most active ETFs in the June 2016 month-to-date are detailed below in Singapore dollars and sorted by MTD turnover.