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Higher warrants turnover for the week; glove makers still in focus

macquarie structured warrants 20200914

The second week of October saw a higher total warrants turnover as the action continues with glove makers Supermax Corporation and Top Glove Corporation still in the spotlight, both ending the week on a positive note. The overall warrants turnover came in at RM761.9mil, which represented an 11.8% jump versus the previous week as warrants over Malaysian shares remained the major contributor to the turnover making up 91.3% of the overall warrants market share.

Call warrant SUPERMX-C1I topped the list for being the most actively traded warrant last week as up to a total of 260.1mil units exchanged hands. Meanwhile SUPERMX-C1L and SUPERMX-C1E made their way to secure the fourth and fifth spot on the most active list with a total of 73.0mil and 72.7mil units traded, respectively as the underlying ended its third straight week in the green. The shares of Supermax had earlier in the week notched a high of RM9.91 on Tuesday but lost steam in the next few days, though still finishing the week 6.2% higher week-on-week (w-o-w) at RM9.54. 

On the local front as well, call warrant MYEG-C87 came in at second place with a total 138.9mil units traded as its underlying saw a 2.2% weekly gain, ending at RM1.40. Prices have on Friday rallied to an intraday high of RM1.46 but eventually lost its footing towards the closing bell. The electronic government services provider had received a letter of acceptance from the Ministry of Health to provide an online payment system for COVID-19 tests for inbound travellers (The Edge Markets, 8 Oct). 

Besides that, call warrant TOPGLOV-C81 landed on third place last week with a total 94.7mil units traded. The December 2020 expiry call warrant was also the top warrant traded by value with a total traded value of RM62.0mil. Other than warrants over glove makers, the index warrants close to expiry HSI-HAY and HSI-C9V (October 2020 expiry) were also among the popular warrants last week with up to 49.9mil and 46.7mil units traded, respectively. Investors should practice caution when trading warrants expiring soon as shorter dated warrants will experience steeper time decay than longer dated warrants, which is an additional holding cost for investors.

Top warrants by volume traded:

Warrant nameVolume
(mil.)
IssuerExercise priceExpiry date
SUPERMX-C1I260.1Kenanga14.0026 Jul 2021
MYEG-C87138.9Kenanga1.2012 Oct 2020
TOPGLOV-C8194.7CIMB5.666731 Dec 2020
SUPERMX-C1L73.0Macquarie15.5016 Apr 2021
SUPERMX-C1E72.7Ambank14.0030 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.

Healthcare Stocks Back in Action

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We noted that last week was not a good week for healthcare stocks as they underwent some consolidation phase, but it gives us the opportunity to look out for the breakout formation in the near term (as they are still in the uptrend intact position). Bursa Exchange was also mixed with the laggards and leaders being on a neutral tone. 

Based on our findings that momentum on healthcare stocks are generally positive, we have put in several stocks under the healthcare theme since last week, such as CAREPLS, HEXZA, TEKSENG, RUBEREX, and etc… 

RUBEREX – M+ Wiz has triggered us this morningSource: M+ Wiz

LUXCHEM – Signalled us at the start of the day, flag breakout for nowSource: M+ Wiz

Both stocks above are the examples of a good setup based on M+ Wiz signals, we will continue to monitor throughout the day. We either wait for the system to alert us or you could wait for the breakout to buy into them after we have put the stocks into the list every morning. 

Plantation stocks could be emerging following the surge in CPO price

Beside having our stock selection revolving around healthcare stocks, we believe the next up and coming sector will be the plantation stocks as the FCPO price has shot up above RM3,000. It is likely to translate to trading interest amongst plantation stocks moving forward.

If you would like to know which plantation stocks that we will be featuring, stay tuned for our M+ Wiz highlights at 1230pm later. 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.

The above examples are not a suggestion for a BUY or a SELL recommendation and it is more for a case study reference material for the future. 

We use M+ Wiz as a system in order for traders to avoid trading based on emotions to perform better in the stock market. However, we certainly recommend traders to put a stop limit to protect your capital just in case the market turns against your trades

M+ Wiz – mitigating trading with emotions!

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