Follow Us For The Latest Updates

Follow Us For The Latest Updates

Bullish trend extends another week

Warrants Commentary (4 to 8 November)

The overall Malaysia warrants turnover for last week came up to RM290.9mil, about 43% above the previous week’s turnover. Once again, warrants over the Hang Seng Index (HSI) dominated the warrants market, comprising 72.5% of turnover with RM211.0mil traded. Warrants over the iShares China A50 Index ETF (China A50 ETF) also held on to investors’ interests as they saw a total turnover of RM17.3mil, taking up 6.0% of the market.

Following the bullish week for the HSI in the previous week, the HSI continued its rally last week, rising for four consecutive days. The HSI jumped 1.6% or over 400 points on Monday as US stocks rose to fresh record highs on Friday the week prior (1 Nov) on the back of a few positive headlines, including China saying that it has reached a consensus in principle with the US during the week’s trade talks (CNBC, 1 Nov). With the increase, put warrant HSI-H8F, which moves in an opposite direction to the underlying level, fell 23.4%, resulting in investors collecting 17.7mil units of this warrant on that day.

From Tuesday to Thursday, the HSI rose a total 1.1% to 27,847.2 points, the highest level since July. However, on Friday, the index fell 0.7% to finish the week at 27,651.1 points, 2.0% higher week-on-week (w-o-w). The HSI November 2019 futures contract, which the HSI warrants currently track, closed at 27,680.0 points last Friday, also 2.0% higher w-o-w. Over these four days, call warrant HSI-C7F, which moves in line with the underlying level, had the highest turnover, resulting in this warrant taking the crown last week. In view of the recent rise in the HSI, this warrant is currently in-the-money as the underlying level of 27,680 points is higher than the exercise level of 27,400.

In the Malaysian scene, MYEG-C82, the call warrant over MY E.G. Services (MYEG), continued to be popular with investors. This warrant emerged as the top traded warrant over Malaysian shares yet again, with RM5.9mil traded. In the first three days of last week, investors net bought over 30mil units of MYEG-C82, then net sold close to 39mil on Thursday and Friday, some of them letting go of positions held from the previous week. W-o-w, MYEG’s share price rose 2.6% to RM1.18.

Top warrants by value traded:

Warrant name Value
(RM’mil.)
Issuer Exercise level / price Expiry date
HSI-C7F 107.6 Macquarie 27,400 30 Dec 2019
HSI-H8F 59.1 Macquarie 26,400 30 Dec 2019
HSI-C7E 11.4 Macquarie 29,200 30 Dec 2019
HSI-C7J 9.8 Macquarie 30,000 27 Feb 2020
A50CHIN-C50 7.8 Macquarie 15.50 31 Mar 2020

If you have any questions or need further assistance, please do not hesitate to contact us at info@malaysiawarrants.com.my.

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

Provided for Malaysian residents information only. 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.

Share:

Share on facebook
Share on twitter
Share on linkedin
Share on telegram

More Posts

Protasco Bhd – 27th Nov 20

We note that new contracts flow remain absent in 3QFY20, implying tapering of construction orderbook. On a brighter note, the maintenance segment is expected to provide some alleviation to the weakness across other segments, backed by an outstanding orderbook to approximately RM3.70bn that ensure recurring stream of income till 2029. We expect Protasco to tap into the RM1.30bn allocation for construction and upgrading of rural roads for 920km under Budget 2021.

Econpile Holdings Bhd – 27th Nov 20

As of 1QFY21, Econpile’s is equipped with an unbilled construction orderbook of approximately RM680.0m from 25 on-going projects. Moving forward, the group’s unbilled orderbook-to-cover ratio at 1.4x against FY20 revenue of RM403.0m will provide earnings visibility over the next two years.

market pulse

Towering above 1,600

The passing of Budget 2021 has instilled further confidence into the Malaysian market as the FBM KLCI soared beyond the 1,600 psychological level yesterday. With the uncertainty from the aforementioned event being eliminated, the focus has now reverted back to the economic recovery progress. Hence, we reckon that the positive momentum may resume over the near term. The lower liners are also on a positive note with investors nibbling on beaten down stocks, capitalising on the positive market sentiment.

OCK Group Bhd – 26th Nov 20

We attended the post quarter results analyst briefing and came away feeling re-assured on OCK Group Bhd (OCK) expansion moving into FY21f. 9MFY20 was largely affected by the slowdown of sites deployment due to the Covid-19 pandemic. Moving into the final quarter of FY20, we understand that the 4Q results are traditionally stronger over the years may see an exception in FY20 due to the current implementation of Conditional Movement Control Order (CMCO) that is impacting the engineering services segment via restriction of interstate travel.

bullish-trend-extends-another-week-m-online