LARGE initial public offerings (IPOs) gave the market a much-needed jolt of energy in July, raising securities turnover at Singapore Exchange (SGX) after a dismal June, according to the latest market data.

But analysts warn that the outlook for the rest of 2012 remains uncertain as global uncertainties continue to chill markets around the world.

The daily average value of securities traded on SGX in the 22 trading days of last month rose 19 per cent from June to $1.2 billion, according to data by the exchange. Year on year, securities' daily average value was nevertheless down 14 per cent.

Average daily trading volume was up 33 per cent month on month to 1.6 billion shares, which was a 30 per cent year-on-year increase.

July turnover velocity, a closely watched indicator of liquidity by SGX that adjusts trading value for market capitalisation, improved from June's 40 per cent to 46 per cent, but continued to lag the 49 per cent velocity from a year earlier.

Phillip Research analyst Ken Ang attributed the spike in July to large listings, such as IHH Healthcare's US$2 billion dual-listing in Malaysia and Singapore. " I believe it's largely due to the new big IPOs that we have seen in July that trading activity increased and therefore led to the increase in securities (daily average value)," Mr Ang said. But he was not confident that the market will continue to enjoy an IPO boost.

" In terms of IPOs, these are dependent on market conditions, and companies want to list at an ideal time whereby there's high interest from the market," Mr Ang said. " Right now, the situation is still a little shaky. I think it may be unlikely for us to see numerous big IPOs in the coming months."

The overall trading environment is also weak with macroeconomic concerns leading the headlines. " Moving forward, the outlook is rather uncertain due to the lack of catalyst given that the macroeconomic environment is still relatively uncertain," Mr Ang said.

" Many of the initiatives that SGX has been introducing will require more time for it to increase SDAV. . . I'm of the view that eventually SDAV will improve, but it may need more time. With most global exchanges similarly experiencing a drop in trading activities, an improvement in the global economy may be required for SDAV to improve."

The derivatives market continued to show year-on-year improvement, although the monthly comparison suggested a slight slowdown.

Average daily trading volume of derivatives on SGX was 270,798 contracts in July, up 7 per cent year on year but down 14 per cent against June. Although securities revenues still surpass derivatives business for SGX, that segment has been slowing gaining share for the bourse.

" We expect derivatives to continue its growth," Mr Ang said. " Increasingly, SGX is growing its presence, and also is introducing a wide variety of products which are gaining traction in the market.

" For example, if you look at the numbers, there's been quite a bit of growth for derivatives over the last few quarters. There are areas where SGX is growing relatively strong at, like OTC iron ore swaps."