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Warrants over rubber gloves and banks among most active

macquarie structured warrants 20200914

Trading activity in structured warrants continued to remain strong as overall turnover rose by 19.8% to RM826.5mil. Warrants over rubber gloves and banks were in the spotlight last week following Top Glove’s record 1Q21 profit which surged 2,041% year-on-year (y-o-y) to RM2.38bil on higher demand due to the pandemic, while the banking stocks saw Public Bank leading the rally, gaining 17.7% week-on-week (w-o-w), following its four-for-one bonus issue proposal announced recently. 

The call warrant over Supermax, SUPERMX-CI remained the most active warrant with a total of 154.1mil units traded. Supermax shares rallied 7.1% on Tuesday to trade above the RM8.00 mark before losing a total 8.4% over three days and finishing the week 8.9% lower w-o-w. Meanwhile, PBBANK-C46 (expiry date 15 Jan 2021) was the second most traded warrant as investors traded 136.3mil units, followed by TOPGLOV-C84 (expiry date 29 Jan 2021) with 102.9mil units traded. Both of these warrants are categorised as in-the-money (ITM) warrants as their exercise prices of RM18.50 and RM6.00 are below their underlying’s prices of RM21.90 and RM6.90 (based on closing price on 11 Dec), respectively. 

MY E.G. Services (MYEG) was also in focus last week as the company announced its partnership with  Anhui Zhifei Longcom Biopharmaceutical to obtain a Malaysian halal certification for the Covid-19 vaccine and to distribute the vaccine in Malaysia exclusively over a three-year period (The News Straits Times, 7 Dec). The share price of MYEG rose to its high of RM2.00 on Wednesday (9 Dec) before closing 2.1% lower at RM1.86 last Friday (11 Dec). Popular call warrants over MYEG include MYEG-1J and MYEG-C93. 

On the foreign front, Fitch Ratings recently raised its forecast for China’s economic growth next year, expecting China’s economy to expand 8% in 2021, up from the 7.7% rate forecast in September (CNBC, 10 Dec). The Hong Kong’s Hang Seng Index (HSI) mostly closed between the 26,300 and 26,500 level last week. The index managed to close in the green last Friday, inching up 0.4% to 26,505.87 points though the index fell 1.2% w-o-w. Call warrant HSI-CBH was the top traded HSI warrant with investors net buying 25.3mil units out of 130.8mil units traded. HSI puts namely HSI-HDJ, HSI-HDN and HSI-HDI were also actively traded, among others. 

Top warrants by volume traded:

Warrant nameVolume
(mil.)
IssuerExercise level/priceExpiry date
SUPERMX-C1I154.1Kenanga14.0026 Jul 2021
PBBANK-C46136.3Kenanga18.5015 Jan 2021
HSI-CBH130.8Macquarie28,00030 Dec 2020
TOPGLOV-C84102.9CIMB6.0029 Jan 2021
AIRASIA-C1J 90.1Kenanga0.80026 Apr 2021

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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.

14-12-2020-m-online