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High demand for the new DNEX call warrant

macquarie structured warrants 20200914

The Malaysia warrants market recorded a 6.3% increase in trading activity last week with a RM137.2mil turnover. Zooming further into the turnover composition, Malaysia stock warrants posted a lower turnover at RM69.0mil while warrants over indices saw a surge in interest with RM50.0mil traded which can be attributed to the higher volatility in global equities in the past week.

Dagang NeXchange (DNEX) is one of the top advancers on Bursa Malaysia this year with a staggering 282.2% gain year-to-date (YTD). The strong share price performance can be attributed to the positive development in the company recently which includes the Ping Petroleum stake increase and the SilTerra Malaysia acquisition alongside its strategic Chinese partner (The Edge Markets, 8 Jun). Call warrant DNEX-CA was crowned the top traded warrant last week with RM18.0mil in turnover as it is the first ever call warrant listed over DNEX. Due to popular demand, this call warrant may be low on inventory. Warrants which are sold out by the issuer (or close to being sold out) may see its market price moving higher than its fair price due to other investors queuing in the market. 

Besides, the share price of V.S. Industry (VSI) finished at a two-month high (RM1.45) on Friday following its highest ever quarterly profit announcement last Wednesday (The Edge Markets, 16 Jun). Bullish investors were actively trading VSI calls, among which VS-C43 emerged as the most popular one with RM5.4mil traded followed by VS-C50 which saw RM1.5mil traded. In comparison to VS-C43, VS-C50 is two months longer dated with its absolute warrant price being 5sen lower.

Meanwhile, the Hong Kong market had a rollercoaster ride last week as the HSI June futures finished lower on the first two trading days of the week before rebounding from the weekly low (28,088) on Thursday and finishing above the 28,700 level on Friday. Bullish investors collected call warrants HSI-CFN and HSI-CFQ early last week and subsequently took profit on their positions as the index futures rebounded on Thursday and Friday. On top of the two call warrants, put warrant HSI-HGN was another HSI warrant which appeared on the top warrant list with RM7.5mil traded.

Top warrants by value traded:

Warrant nameValue (RM’mil.)IssuerExercise level/priceExpiry date
DNEX-CA18.0RHB0.9028 Mar 2022
HSI-CFL12.0Macquarie29,00029 Jun 2021
HSI-CFQ9.8Macquarie29,60029 Jul 2021
HSI-HGN7.5Macquarie28,00029 Jun 2021
VS-C435.4Kenanga1.2429 Sep 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. The Warrants will not be offered to any US persons.

Attention continues on warrants over Serba Dinamik and MMC Corp

macquarie structured warrants 20200914

With the public holiday on Monday, the shortened trading week resulted in a lower total warrants turnover of RM129.1mil last week. Investors should also note that there is a public holiday in Hong Kong on Monday (14 Jun), meaning there will be no market making for warrants over Hong Kong listed underlyings such as the Hang Seng Index (HSI), Hang Seng TECH Index (HSTECH), iShares FTSE China A50 ETF (China A50 ETF) and Hong Kong shares.

The previous week’s interest in warrants over Serba Dinamik (SERBADK) and MMC Corporation (MMCCORP) carried into the past week. SERBADK shares continued to fall, kicking off Tuesday with a 19% plunge to RM0.620 before staging a slight recovery over Wednesday and Thursday, but finished Friday with a 5.5% decline, ultimately closing 20.9% lower week-on-week (w-o-w) to RM0.605. Call warrant SERBADK-C17 took the fifth spot in the top traded list with 27.5mil units traded. 

In contrast, after MMCCORP shares limit up on the previous Friday (4 Jun) following Tan Sri Syed Mokhtar’s proposal to bring MMCCORP private via a selective capital reduction (SCR) exercise at RM2.00 per share, the shares ended the week 7.1% higher to RM1.81. Call warrant MMCCORP-C23 was third in the top traded list with 35.2mil units traded. Other than that, the shares of Genting Malaysia (GENM) moved 3.8% higher w-o-w to RM2.98. GENM-C89, which came in second in volume traded last week, correspondingly moved up by 5.9%.

On the foreign front, the HSI fell for the 7th consecutive day on Thursday, before staging a small 0.4% recovery on Friday to end the week at 28,842.13 points, down 0.3% w-o-w. Despite the lacklustre performance in the current weeks, the HSI is still up by 5.9% year-to-date. Two HSI warrants ended up in the top traded list – put warrant HSI-HGN with 85.5mil units traded and call warrant HSI-CFP with 29.0mil units traded. 

Investors should note that HSI-HGN expires on 29 June 2021 with its last trading date on 25 June 2021, meaning investors would be unable to buy or sell this warrant after 25 June 2021. Further, investors should consider warrants with longer time to expiry, as warrants with shorter time to expiry tend to experience a faster rate of time decay, resulting in higher holding cost for investors.

Top warrants by volume traded:

Warrant nameVolume (mil.)IssuerExercise level/priceExpiry date
HSI-HGN85.5Macquarie28,00029 Jun 2021
GENM-C8943.6Kenanga3.11378 Nov 2021
MMCCORP-C2335.2RHB1.0027 Aug 2021
HSI-CFP29.0Macquarie31,60029 Jul 2021
SERBADK-C1727.5Maybank1.4830 Nov 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. The Warrants will not be offered to any US persons.

Serba Dinamik, MMC Corporation and Pharmaniaga calls take centre stage

macquarie structured warrants 20200914

As the country enters a 14-day Full Movement Control Order (FMCO) on 1 June, the Malaysia warrants market saw an uptick in trading interest last week, recording a total RM175.2mil turnover which is 71.5% higher week-on-week (w-o-w). Warrants over Malaysian stocks were the primary driver with RM139.4mil traded, with Serba Dinamik (SERBADK), MMC Corporation (MMCCORP) and Pharmaniaga (PHARMA) being the top 3 popular underlyings last week.

There were several eye-catching headlines last week, led by the resumption of trading in SERBADK shares on Monday after two days of suspension on the prior week following the flagging of its external auditors over the company’s financial accounts, followed by Tan Sri Syed Mokhtar’s proposal to bring MMCCORP private via a selective capital reduction (SCR) at RM2 per share last Friday (The Edge Market, 4 Jun). The share price of SERBADK plunged more than 47.5% w-o-w to finish at RM0.765, which is its lowest level since 2017. Call warrants SERBADK-C17 and SERBADK-C25 secured the top and fourth spot on the list with 119.0mil and 86.1mil units traded. On the contrary, the share price of MMCCORP jumped approximately 44.4% w-o-w to close at RM1.69. Since the stock was trading at limit up (RM1.69) throughout the day last Friday, bullish investors switched their focus to MMCCORP call warrants, out of which, MMCCORP-C23 was the most popular call warrant with 89.0mil units traded, followed by MMCCORP-C24 and MCCCORP-C25. 

Besides, more than 67.4mil units of PHARMA-CC exchanged hands last week as PHARMA shares saw a rollercoaster week. On Monday, the share price of the pharmaceutical group limits up (+29.8%) but subsequently reversed its course to finish flat for the week despite news that PHARMA has received a request to supply seven million doses of Sinovac Covid-19 vaccine to government-linked companies and the state government on Tuesday (The Edge Markets, 1 Jun). Lastly, Hang Seng Index (HSI) warrants continued to dominate the index warrants space with investors being more downside biased, which resulted in put warrant HSI-HGN being the second most popular warrant in Malaysia last week.

Top warrants by volume traded:

Warrant nameVolume (mil.)IssuerExercise level/priceExpiry date
SERBADK-C17119.0Maybank1.4830 Nov 2021
HSI-HGN107.1Macquarie28,00029 Jun 2021
MMCCORP-C2389.0RHB1.0027 Aug 2021
SERBADK-C2586.1AmInvestment1.7520 Jan 2022
PHARMA-CC67.4RHB5.8828 Jul 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. The Warrants will not be offered to any US persons.

Rocky week for glove names despite FBMKLCI moving higher

macquarie structured warrants 20200914

Despite the country’s Covid-19 cases continuing to record new highs, the local benchmark FBM KLCI closed in the green each day last week, ending the week 2.1% higher at 1,594.44 points. However, the shares of Malaysia’s largest glove makers bucked the trend to close in the red all week, as the United States Customs and Border Protection (“CBP”) issued a second finding following its seizure of two of Top Glove’s shipments earlier in the month, and that Supermax may be excluded as a constituent of the FBM KLCI after just 6 months. Top Glove shares were down 4.1% week-on-week (w-o-w), while Supermax shares were down 10.9% w-o-w. 

Call warrant TOPGLOV-C1L made it into the top warrants list with 35.7mil units traded, while other warrants such as call warrant SUPERMX-C1Z and put warrant SUPERMX-HF also led the pack. TOPGLOV-C1L has relatively longer time to expiry as it expires on 8 October 2021, meaning it experiences relatively lower time decay i.e. lower holding costs for investors.

Meanwhile, the shares of D & O Green Technologies rebounded in recent weeks, buoyed further by the release of its first quarter results last Monday (24 May), reporting a revenue of almost double of last year’s quarter, with its net profit up almost 7 times year-on-year to RM29.7mil. After closing at RM4.20 on the previous Friday (21 May), it rose 6.9% over three days to RM4.49, before falling 4.7% on Friday to finish the week at RM4.28, 1.9% higher w-o-w. The call warrant D&O-CI saw 25.3mil units traded as it correspondingly rose 6.7% w-o-w. 

Given investors’ cautious sentiments on potentially stricter restrictions in the country, warrants over the Hang Seng Index (HSI) took up a larger percentage of turnover at 37% versus 27% in the previous week. The HSI had a good week, rising over 750 points on Tuesday and Wednesday, and securing most of its gains to end the week at 29,124.41 points, 2.3% higher w-o-w. 

As the HSI rose on Tuesday, investors net bought 11mil units and 4.5mil units of put warrants HSI-HGM and HSI-HGN respectively, and net sold call warrants HSI-CFK and HSI-CFP as they rose 60% and 35% respectively. In view of the public holiday on Wednesday, investors continued to accumulate the puts when market reopened Thursday. Last week’s movements placed all these HSI warrants in the top traded list, with put warrant HSI-HGM taking the crown at 79.1mil units traded.

Top warrants by volume traded:

Warrant nameVolume (mil.)IssuerExercise level/priceExpiry date
HSI-HGM79.1Macquarie26,00029 Jun 2021
HSI-HGN43.4Macquarie28,00029 Jun 2021
HSI-CFP36.0Macquarie31,60029 Jul 2021
TOPGLOV-C1L35.7Macquarie4.888 Oct 2021
HSI-CFK34.5Macquarie31,00029 Jun 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, kindl-y 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. The Warrants will not be offered to any US persons.

HSI warrants, SUPERMX-C1Z among most active

macquarie structured warrants 20200914

The Malaysia warrants market was rather quiet last week with the overall warrants turnover coming in at RM151.5mil, post Hari Raya celebrations. Investors continued to remain in cautious mode amid reports of record high Covid-19 cases in the country and concerns of potential stricter economic and social restrictions. The benchmark FBMKLCI ended its fourth consecutive week in red territory, down by 1.3% to 1,562.17. 

For the week, warrants over single stocks was the major contributor with RM103.2mil traded, representing 68.1% of the total warrants turnover while warrants over the Hang Seng Index (HSI) contributed 27.3% with its total turnover recording RM41.3mil in value traded. Call warrants D&O-CC and SUPERMX-C1Z were among the top single stock warrants on the list and recorded RM5.9mil and RM5.6mil turnover each  last week. As Covid-19 cases in the country hit record highs, there were renewed interest in the rubber glove makers as industry giants Top Glove and Supermax jumped by 2.1% and 8.2% respectively last Wednesday. As a result, call warrant TOPGLOV-C1L also saw a pickup in trading interest, registering RM4.1mil in value traded  for the week.

Meanwhile on the foreign front, warrants over the Hang Seng Index (HSI) dominated the index warrants space despite the holiday shortened week in conjunction with the Birthday of the Buddha holiday in Hong Kong on Wednesday. Put warrant HSI-HGM was the most popular warrant with RM7.3mil turnover followed by call warrant HSI-CFP which saw RM6.1mil traded last week. The underlying HSI May futures contract snapped a three-week losing streak and recorded three green days out of four to end the week in the positive territory at 28,336, up 1.5% week-on-week (w-o-w). Bearish investors took home more than 5.4M units of HSI-HGM as the bid price of the put warrant finished 47.6% lower w-o-w. HSI-HGN was another put warrant which is popular among the investors, logging in RM5.6mil turnover to secure the last spot on the top traded warrant list last week

Top warrants by value traded:

Warrant nameValue (RM’mil.)IssuerExercise level/priceExpiry date
HSI-HGM7.3Macquarie26,00029 Jun 2021
HSI-CFP6.1Macquarie31,60029 Jul 2021
D&O-CC5.9Kenanga2.888 Nov 2021
SUPERMX-C1Z5.6CIMB5.5030 Sep 2021
HSI-HGN5.6Macquarie28,00029 Jun 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, kindl-y 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. The Warrants will not be offered to any US persons.

HSI and Supermax warrants dominate the warrants space

macquarie structured warrants 20200914

The Malaysia warrants market saw a slow start in May with RM191.9mil traded last week, in line with the broader market. The local benchmark index fell to its lowest level (1,556) this year on Thursday before erasing some its losses to close at 1,587.45 on Friday. Investors remained cautious amid better-than-expected economic data and Bank Negara Malaysia’s decision to keep the overnight policy rate unchanged at 1.75% last week.

Warrants over Malaysia single stocks and the Hang Seng Index (HSI) took up a majority of last week turnover. Out of which, call warrants HSI-CFP and HSI-CFH were the top traded warrants with RM16.3mil and RM13.8mil turnover, respectively. Bullish investors took home more than 1.3mil units in HSI-CFP despite the HSI May Futures closing unchanged week-on-week. Bearish investors also showed vast interest in put warrant HSI-HGK which placed third on the top warrants list with RM10.4mil traded. In contrast to call warrants, put warrants generally move in an opposite direction to the underlying futures.

On the local front, Supermax call warrants were actively traded last week as the underlying took over headlines, reporting a RM1.0bil net profit for third quarter ended 31 Mar 2021 (The Edge Markets, 6 May 2021). The share price of Supermax plunged more than 12.8% on Thursday despite the financial results being just marginally lower compared to the prior quarter, as investors weighed Supermax’s statement with regard to its concerns over mounting pressure on gloves’ average selling prices and overcapacity. 

Call warrants SUPERMX-C98 and SUPERMX-C1Z were the fourth and fifth most active warrants last week as a result of the recent share price volatility. Between the two Supermax call warrants, SUPERMX-C1Z has a higher exercise price and longer expiry date. Assuming that all other factors are held constant, warrants with longer time to expiry generally experience slower time decay, meaning there is lower holding costs for investors. Other than that, call warrants COMFORT-CI, D&O-CI, SUPERMX-C2B and TOPGLOV-C1L also appeared on investors’ radar as their respective underlyings finished in the negative territory last week. 

Top warrants by value traded:

Warrant nameValue (RM’mil.)IssuerExercise level/priceExpiry date
HSI-CFP16.3Macquarie31,60029 Jul 2021
HSI-CFH13.8Macquarie30,20028 May 2021
HSI-HGK10.4Macquarie27,00028 May 2021
SUPERMX-C987.4Kenanga4.5031 May 2021
SUPERMX-C1Z7.0CIMB5.5030 Sep 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. The Warrants will not be offered to any US persons.

SUPERMX-C1I and MAHSING-C32 among most active

macquarie structured warrants 20200914

Overall warrants turnover continued to decline last week, falling another 25.5% week-on-week (w-o-w) to RM177.4mil due to a shorter trading week, in conjunction with the Nuzul Al-Quran holiday on Thursday (29 April). Warrants over stocks remained the biggest contributor, representing 70.2% of the total turnover at RM124.5mil (+12.0% w-o-w) while warrants over the Hang Seng Index (HSI) contributed 28.8% with its total turnover recording at RM51.1mil (-45.0% w-o-w). 

The FBM KLCI started last week on an upbeat note, rising 0.9% to its month-high of 1,623.47 points on Monday (26 April). On Monday, among the big four rubber glove makers, Kossan saw the biggest intraday rally, gaining 6.9% followed by Supermax, rising 5.6%. Throughout the week, both counters added 2.1% w-o-w and 1.3% w-o-w, respectively while Top Glove and Hartalega fell 1.4% w-o-w and 4.6% w-o-w, respectively. 

Mah Sing’s first glove manufacturing factory in Kapar, Klang has recently successfully completed the testing and commissioning of its two production lines that will begin this month. It will have a total of 12 production lines, with the rest of the production lines to commence operation in the second and third quarters. The company projects a maximum production capacity of up to 3.68bil pieces of gloves annually (The Edge Markets, 26 April). Last Monday, Mah Sing’s share price joined the gloves rally, jumping to its year high of RM1.08 (+6.9%) before closing slightly lower at RM1.03 on Friday, up 2.0% w-o-w. 

Three warrants over the glove makers made it to the top 5 most active warrants; SUPERMX-C1I recorded the highest trading volume of 107.6mil units, followed by MAHSING-C32 which came in second as investors net sold 12.9mil out of the 88.4mil units traded. Meanwhile, HARTA-C59 had investors trading more than 68.4mil units. 

On the foreign front, the HSI fell 1.2% w-o-w based on last Friday’s closing level of 28,724.9 points (-2.0%). HSI-CFK and HSI-HGK remained popular with investors trading more than 80mil units each. Do take note that HSI-CFK was sold out as investors bought more than 24mil units last week. Exercise caution when trading sold out warrants as the warrant price may be inflated by other investors queueing in the market. Always refer to the live matrix to see a warrant’s fair bid price. 

Top warrants by volume traded:

Warrant nameVolume (’mil.)IssuerExercise level/priceExpiry date
SUPERMX-C1I107.6Kenanga14.026 Jul 2021
MAHSING-C3288.4Macquarie0.8011 Jun 2021
HSI-CFK80.7Macquarie31,00029 Jun 2021
HSI-HGK75.7Macquarie27,00028 May 2021
HARTA-C5968.4Kenanga23.026 Jul 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. The Warrants will not be offered to any US persons.

Gloves, HSI warrants continue to take centre stage

macquarie structured warrants 20200914

Trading activity in the structured warrants scene was slower last week with the overall Malaysia warrants market turnover coming in at RM238.1mil, a 10.2% drop compared to its previous week. Warrants over single stocks remained the major contributor for the week, making up approximately 59.4% of the total turnover at RM141.4mil followed by warrants over the Hang Seng Index (HSI) with RM92.9mil traded (39% of total turnover).

As Covid-19 cases in the country and globally continued to mount, there were renewed interest especially in the rubber glove makers which were hard hit over the first quarter of 2021. Shares of glove makers continued to log impressive gains for a third week in a row with Kossan Rubber Industries and Supermax Corporation leading gains, rallying by 13% and 12.1% respectively for the week. 

Mah Sing Group, which expects to start its rubber glove production next month also advanced 9.8% week-on-week (w-o-w) leading to a surge in trading activity in both its shares and structured warrants over this name. For the week, call warrants SUPERMX-C98 and MAHSING-C32 recorded a total value traded of RM15.1mil and RM8.8mil, with up to 47.2mil and 146.1mil units traded, respectively. 

It was another volatile week for the HSI as it swung within a range of 28,506.76 to 29,319.76 before finishing a second straight week in the green at 29,078.75 (+0.4%). The gains also saw the spot month April futures contract end 0.3% higher at 29,052 with 4 green days out of 5. Prices started off the week on a positive note but tumbled sharply on Wednesday weighed by overnight losses at Wall street. The day saw intense selling pressure with the HSI futures tumbling 1.9% before gaining ground on Thursday through Friday. 

Call warrants HSI-CFK and HSI-CFH and put warrant HSI-HGK were the top traded warrants last week with a combined traded value of RM66.5mil. Investors should note that HSI-HGK is completely sold out and that the issuer can no longer provide an offer price. The bid price, however, will be maintained and will track the underlying price movement accordingly, allowing existing investors to sell back the warrants at a fair price. 

Top warrants by value traded:

Warrant nameValue (’mil.)IssuerExercise level/priceExpiry date
HSI-CFK26.1Macquarie31,00029 Jun 2021
HSI-HGK24.1Macquarie27,00028 May 2021
HSI-CFH16.3Macquarie30,20028 May 2021
SUPERMX-C9815.1Kenanga4.5031 May 2021
MAHSING-C328.8Macquarie0.80011 Jun 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. The Warrants will not be offered to any US persons.

HSI-HGK topped the list again as the HSI rebounded

macquarie structured warrants 20200914

Once again, warrants over the Hang Seng Index (HSI) were actively traded last week; the put warrant HSI-HGK took the top spot with RM52.2mil or 298.2mil units traded, while the call warrant HSI-CFK was second in line with RM34.4mil or 149.4mil units traded. The HSI warrants saw its turnover more than double to RM122.9mil from the previous week, comprising 46.4% of last week’s total warrants turnover of RM265.0mil. 

The HSI April 2021 futures, over which Macquarie’s HSI warrants track, started the week in the red by falling 0.8% last Monday before rising 0.4% and 1.4% on Tuesday and Wednesday respectively to close at 28,915. On Wednesday, the Chinese government issued warnings to 34 other technology companies to instil anti-monopoly practices and adhere to antitrust regulations, following its USD2.75bil fine on Alibaba over the previous weekend. Following the fine and warnings, the HSI’s rebound was supported by the rally in Chinese technology stocks as there is now more clarity from regulators on the framework and how to approach the new practices. The futures then lost 0.5% on Thursday and rebounded 0.7% on Friday to finish the week at 28,983, 1.2% higher week-on-week (w-o-w). On Friday alone, bearish investors net bought 22mil units of put warrant HSI-HGK. 

Investors should take note of the expiry dates of the top traded warrants HSI-HGK, HSI-CFK and HSI-CFH. HSI-HGK and HSI-CFH both expire on 28 May 2021 while HSI-CFK expires on 29 June 2021. Warrants with shorter time to expiry tend to experience an increased rate of time decay, resulting in higher holding costs to investors. Investors may consider warrants with longer time to expiry to reduce their holding costs. Time decay occurs on a day-to-day basis and does not affect investors who buy and sell the warrants within a trading day. 

On the local front, glove companies returned to attention last week as their shares rallied with Covid-19 cases continuing to rise globally. Supermax shares rose 16.2% w-o-w to close at RM5.31 on Friday, while Top Glove shares increased 6.5% w-o-w to end the week at RM5.57. Call warrants SUPERMX-C98 and TOPGLOV-C1L were in the top traded warrants list last week, clocking in turnovers of RM14.1mil and RM9.7mil respectively.

Top warrants by value traded:

Warrant nameValue (RM’mil.)IssuerExercise level/priceExpiry date
HSI-HGK52.2Macquarie27,00028 May 2021
HSI-CFK34.4Macquarie31,00029 Jun 2021
SUPERMX-C9814.1Kenanga4.5031 May 2021
HSI-CFH13.4Macquarie30,20028 May 2021
TOPGLOV-C1L9.7Macquarie4.888 Oct 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. The Warrants will not be offered to any US persons.

HSI-HGK dominates the warrants market

macquarie structured warrants 20200914

The Malaysia warrants market saw a total of RM233.3mil traded on the second week of April, which is 15.4% higher than RM202.1mil in the prior week. Out of which, the warrants over Malaysian underlyings were the largest contributor with RM167.4mil traded (71.8% to the total turnover) followed by warrants over the Hang Seng Index (HSI) with RM56.3mil traded (24.1% of total turnover) as the Hong Kong market was shut on Monday and Tuesday.

The share price of Malaysian telecommunications company Digi.com (DIGI) surged 18.9% on Friday (9 Apr) following an announcement that Axiata Group and DIGI’s parent company Telenor are in talks on merging their Malaysian operations to form Celcom Digi Berhad (The Edge Markets, 8 Apr). Investors gained leveraged exposure to DIGI shares via call warrants, with DIGI-C45 emerging as the most popular DIGI warrant with RM16.9mil traded last week. Besides, glove maker Top Glove Corporation also saw one of its best weeks since late September 2020 as the share price finished 10.1% higher week-on-week (w-o-w).  TOPGLOV-C1L was the most popular TOPGLOV call warrant last week, with bullish investors taking home 6.0mil units as the bid price finished 23.5% higher.

Investors also showed vast interest in HSI warrants, namely call warrant HSI-CFK and put warrant HSI-HGK as the Hong Kong market resumed trading on Wednesday (7 Apr) after a 5-day long weekend. It was indeed a choppy week for the Hong Kong market as the HSI April futures finished flattish last week despite the 1.4 to 1.7% intraday movement. The rangebound movement between 28,168 and 29,148 in the HSI futures has presented opportunity to investors to trade in either directions. With a total of RM30.7mil turnover last week, HSI-HGK emerged as the most popular warrants on Bursa Malaysia for the week. Bearish investors bought more than 22M units of this put warrant on Thursday (8 Apr) when the HSI futures traded above 29,000 level, and subsequently sold back their positions with up to a 19.1% gain as the HSI futures finished at 28,634 on Friday (9 Apr). Meanwhile, call warrant HSI-CFK, which saw RM14.3mil traded, came in fourth on the top traded warrant list.

Top warrants by value traded:

Warrant nameValue (RM’mil.)IssuerExercise level/priceExpiry date
HSI-HGK30.7Macquarie27,00028 May 2021
DIGI-C4516.9Ambank4.3021 Oct 2021
MYEG-C1H14.9Kenanga1.2012 Apr 2021
HSI-CFK14.3Macquarie31,00029 Jun 2021
TOPGLOV-C1L12.5Macquarie4.888 Oct 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. The Warrants will not be offered to any US persons.

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