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Warrants over glovemakers remain in focus

macquarie structured warrants 20200914

Warrants Commentary (14 Sep to 18 Sep)

The Malaysian warrants market saw a dip in trading last week with the total warrants turnover coming in at RM932.2mil, down by approximately 10.4% from RM1.04bil a week ago due to a shorter trading week in conjunction with the Malaysia Day holiday on 16 September. Warrants over Malaysian shares were still the major contributor to the total warrants turnover making up approximately 93.3% with a total value traded of RM869.6mil, followed by warrants over the Hang Seng Index (HSI) which recorded a total value  traded of RM56.8mil, approximately 6.1% of the total warrants turnover.

Rubber glove makers still took on the centre stage last week with higher price volatility. All eyes were on glove giant Top Glove Corporation as it reported its best quarterly net profit on Thursday with RM1.29bil for 4QFY20 ended 31 August 2020, which is almost 18 times the RM74.17mil posted last year (The Edge Markets, 17 Sep). Its share price however, took a beating post earnings to tumble 7.6% to finish at RM7.79 on Thursday, before staging a minor rebound to end Friday at RM7.98, up 2.8% week-on-week (w-o-w). The volatile week also saw the share price of Supermax jumping a staggering 20% on Monday to close at RM9.00 before sinking for the next three days to end the week still up by 1.3% at RM7.60 on Friday. 

The holiday shortened week saw call warrants SUPERMX-C1I, TOPGLOV-C81 and TOPGLOV-C84 taking the top three spots of the most actively traded warrants with a total of 346.3mil, 166.2mil and 157.4 mil units traded, respectively. TOPGLOV-C81 was also the top traded warrant by value last week with a total turnover of RM90.6mil, followed by TOPGLOV-C84 with up to RM67.7mil in value traded. HARTA-C59 and SUPERMX-C1E were also among the popular warrants traded with a total volume of 112.2mil and 108.6mil units, respectively. 

Glove makers aside, warrants over the HSI were also quite popular among investors especially with the underlying HSI futures swinging within a range of 24,198 – 24,898 last week. Call warrants HSI-C9V and HSI-C9U clocked in 84.2mil and 70.3mil units respectively while put warrant HSI-HAY saw a total of 62.6mil units changing hands. The spot month September HSI futures contract ended the week little changed at 24,456.0.

Top warrants by volume traded:

Warrant nameVolume
(mil.)
IssuerExercise level / priceExpiry date
SUPERMX-C1I346.3Kenanga14.0026 Jul 2021
TOPGLOV-C81166.2CIMB5.6731 Dec 2020
TOPGLOV-C84157.4CIMB6.0029 Jan 2021
HARTA-C59112.2Kenanga23.0026 Jul 2021
SUPERMX-C1E108.6Ambank14.0030 Apr 2021

If you have any questions or need further assistance, please do not hesitate to contact us via our hotline at 03-2059 8840 or email us at [email protected]

To view the full list of structured warrants available on Bursa Malaysia, kindly visit malaysiawarrants.com.my

Provided for Malaysian residents information only. This commentary has not been reviewed by the Securities Commission Malaysia. It is not an offer or recommendation to trade and is not research material. Past performance is not indicative of future performance. You should make your own assessment and seek professional advice.

A good week for Plantation Stocks?

wiz-plantation-stocks

Shown in the figure below, we noticed the strong trend for the FCPO since the range of RM2795-2800 to above RM3000, closing at RM3080 last Friday and we believe this trend may still sustain over the near term, targeting RM3150 and longer term target will be set around the RM3400 level. With the firm trend in FCPO, traders would have noticed the buying support for plantation has grown in the past few trading days on Bursa Exchange. 

Source: Bloomberg

With the idea that higher FCPO price would translate into strong earnings for plantation counters moving forward, the plantation index (figure below) has breakout above the short term downward trendline and could be trading towards 7393 level, with the support located around 6978. 

Plantation index – Breakout above downward trendlineSource: M+ Wiz

Hence, we have handpicked several counters under the plantation sector for M+ Wiz to trigger us the alert for entry since last week. Some of the stocks mentioned in our M+ Wiz include KMLOONG, SOP, HARNLEN, RSAWIT, FGV, IJMPLNT, INNO and CBIP (plantation related). 

For today, it has been decent as buying interest on plantation stocks remains sturdy and FCPO trades around RM3080-3100 range at the start of the futures market. With that, we believe that will lift the broad plantation stocks at least for the rest of the week. 

M+ Wiz alerts for this morning

INNO – Triggered around RM1.13, hitting the intra-day high at RM1.19.Source: M+ Wiz

IJMPLNT – Triggered around RM1.90, hitting the intra-day high at RM1.92.

Source: M+ Wiz

CEPAT – Triggered around RM0.68, hitting the intra-day high at RM0.70.

Source: M+ Wiz

M+ Wiz is a system to avoid trading based on emotions, assisting traders to perform better in the market. We reckon traders to put a stop limit and protect your capital just in case the market turns against us. 

Stay tuned for the M+ Wiz highlights every Monday at 12:30pm, we will be on our FB live and share our thoughts on the market for that session. If you like our videos, remember to click “Like” and “Share” to your friends.

We would like to highlight that these examples above are not a suggestion for a BUY or a SELL recommendation and it is more for a case study reference material for the future. 

Creating wealth using M+ Wiz!

21-09-2020-m-online