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
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 [email protected].

To view the full list of structured warrants available on Bursa Malaysia, kindly visit

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 on facebook
Share on twitter
Share on linkedin
Share on telegram

More Posts

SLP Resources Bhd – 25th Feb 21

Moving in FY21f, we believe that sales from the local market will continue to take charge (>50%), after raking 53.3% of total revenue in FY20 as oppose to only 39.0% recorded in FY19. For now, SLP will focus on ramping up the production of kitchen and garbage bag, targeting 25% of production output in FY21f (from less than 20% recorded in FY20).

Econpile Holdings Bhd – 25th Feb 21

As of 2QFY21, Econpile’s is equipped with an unbilled construction orderbook of approximately RM930.0m from 23 on-going projects. Moving forward, the group’s unbilled orderbook-to-cover ratio at 2.3x against FY20 revenue of RM403.0m will provide earnings visibility over the next three years.

market pulse

Rebound in sight

Selling pressure in the glove counters persisted, pushing the FBM KLCI into the negative territory in the afternoon trading session. Whilst the National Covid-19 Immunisation Programme kickoff did not boost the local bourse yesterday, we opine some bargain hunting activities to arise in lower liners after close to 1,000 counters closing in the red. Meanwhile, the Brent oil price continues to climb above USD67.

market pulse

Bargain hunting may take shape

In contrast with the regional gains, the FBM KLCI failed to sustain its intraday gains as the key index slipped into negative territory during the final trading hour. We expect the arrival of the second batch of Pfizer-BioNTech vaccine today and the vaccine distribution to different states will continue to attract buying interest in recovery-theme stocks moving forward. Meanwhile, crude oil price continued to remain firm above the USD65 level for the time being. Also, traders will focus on high earnings certainty sectors during this reporting season.