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Glove makers continue to dominate warrants space

Trading in the Malaysian warrants market saw improvements last week with the total warrants turnover coming in at RM799.4mil helped by warrants over glove makers, as glove shares continued their rally following previous week’s consolidation. The major contributor to the total warrants turnover last week were still the warrants over Malaysian shares which made up approximately 80.9%, with a total value traded of RM646.6mil, while warrants over the Hang Seng Index (HSI) came in second place with a total value traded of RM113.4mil, approximately 14.2% of the total warrants turnover. 

Glove makers staged a stellar performance last week, following its pullback the previous week, with shares of Top Glove, Supermax and Hartalega soaring to fresh records buoyed by strong buying activities throughout the week. Top Glove rose for the fifth straight day on Friday to end at an all-time high of RM18.46 and closing the week up by 23.9%, while Supermax and Hartalega also registered an impressive 37.4% and 34.0% rise respectively, week-on-week (w-o-w). 

The big rally in these glove names saw call warrants like TOPGLOV-C81 and SUPERMX-C91 being actively traded. TOPGLOV-C81 came in on third place of the top active warrants list last week with 91.9mil units while SUPERMX-C91 was fifth place with up to 68.1mil units traded. It was the top traded warrant by value last week with a total turnover of RM77.6mil. Other than that, TOPGLOV-C77 and HARTA-C41 were also among the popular warrants with a turnover of RM39.5mil and RM36.4mil, respectively. 

That aside, warrants over the HSI were also popular among investors as the underlying HSI futures wrapped up the week on an upbeat note at 25,295.0, rising 3.2% for the week, despite kicking off Monday on a weaker tone. Gains were helped by the sharp 3.7% rally on Thursday after the market resumed trading from the Hong Kong Special Administrative Region Establishment Day holiday on Wednesday. 

HSI-HAV and HSI-C9T occupied the top two spots on the most active list last week, with up to 124.5mil and 92.0mil units traded, respectively while call warrant HSI-C9S came in fourth with 90.6mil units. On Monday, call warrant HSI-C9S ended up in the sold out list as investors net bought more than 12mil units of this warrant. It was then removed from the sold out list on Thursday after investors sold back more than 16M units amid profit taking activities as the underlying rose.

Top warrants by volume traded:

Warrant nameVolume
(mil.)
IssuerExercise level / priceExpiry date
HSI-HAV124.5Macquarie20,00030 Oct 2020
HSI-C9T92.0Macquarie26,20028 Aug 2020
TOPGLOV-C8191.9CIMB17.0031 Dec 2020
HSI-C9S90.6Macquarie27,60028 Aug 2020
SUPERMX-C9168.1CIMB4.5031 Dec 2020

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 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. 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.

HSI calls and puts top the list amid volatile market

The warrants market saw a dip in the turnover for the week ended 26 June, falling 42.9% week-on-week (w-o-w) to RM392.2mil. Warrants over Malaysian shares again took up the majority of trading in the warrants space, making up 58.3% of total turnover, while warrants over index underlying took up the remaining 41.7%. 

Despite the Hong Kong market having a shorter trading week in conjunction with the Tuen Ng Festival last Thursday, warrants over the Hang Seng Index (HSI) i.e. HSI-HAV (put warrant) and HSI-C9S (call warrant) emerged as the most popular warrants, recording a total trading volume of 164.6mil units and 163.1mil units, respectively. Investors had mixed views over the HSI as they net bought 11.1mil units of HSI-HAV and 13.5mil units of HSI-C9S. 

It was a roller coaster ride for the Hong Kong market last week with the index having a big upswing on Tuesday, surging 1.6% to close at 24,907.34 points following Trump’s statement clarifying that the US-China trade deal was still fully intact. The US President tweeted to deny a news piece, which took US trade advisor Peter Navarro’s statement “out of context” to state that the trade deal was over. However, the HSI then declined a total 1.4% over the next two trading days (Wednesday, 24 June and Friday, 26 June) to close at 24,549.99 points last Friday, down 0.4% w-o-w. 

On the local front, the temporary suspension of short selling, which was to end on 30 June 2020, has been extended to 31 December 2020. This move was introduced by the Securities Commission and Bursa Malaysia back in March as a measure to stabilise the stock market and to reduce distortion of share prices caused by heightened volatility in the market due to the Covid-19 pandemic.  

Trading wise, a put warrant over FBM KLCI, FBMKLCI-H8R, garnered good demand, with bearish investors trading 30.7mil units. The FBM KLCI slipped 1.3% to close below the 1,500-level last week, finishing at 1,488.14 points.  Meanwhile, SUPERMX-C91, FGV-C95 and VS-C30 were among investors’ favorites last week, recording trading volumes of 29.1mil, 26.8mil and 26.4mil units, respectively. 

Top warrants by volume traded:

Warrant nameVolume
(mil.)
IssuerExercise level / priceExpiry date
HSI-HAV164.6Macquarie20,00030 Oct 2020
HSI-C9S163.1Macquarie27,60028 Aug 2020
HSI-C9T74.6Macquarie26,20028 Aug 2020
FBMKLCI-H8R30.7Maybank1,50828 Aug 2020
SUPERMX-C9129.1CIMB4.5031 Dec 2020

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 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.

Warrants market buoyed by trading in glove names

Warrants Commentary (15 Jun to 19 Jun)

Total warrants turnover last week came in at RM686.2mil with warrants over Malaysian glove producers continuing to see high demand as gloves shares dipped last week following the previous week’s surge. Warrants over Malaysian shares still made up a majority of warrant trading activities last week, comprising 68.6% of total warrants turnover, albeit lower than 82.8% in the previous week. Coming in second but seeing a rise from the previous week were warrants over the Hang Seng Index (HSI) with a value traded of RM145.2mil, representing 21.2% of turnover. 

It was yet another volatile week for warrants over glove makers. The shares of Top Glove failed to maintain its momentum from the previous week’s high of RM17.08 (10 Jun), as the shares fell 10.1% on Monday to RM15.20 and failed to claw back most of its losses, ending the week at RM15.40, down 8.9% week-on-week (w-o-w). Call warrant TOPGLOV-C77, with an in-the-money exercise price of RM10.70, came in fifth place on the top traded list with 54.3mil units traded. Another call warrant that drew attention was TOPGLOV-C79, which was listed on Friday (19 Jun) and has an out-of-the-money exercise price of RM26.00. It saw over 10mil units traded in one day, with investors taking home 5.1mil units.

Other than that, warrants over Supermax and Hartalega were also actively traded as their underlying prices ended the week at RM7.40 (-6.4% w-o-w) and RM12.08 (-3.5% w-o-w), respectively. Adding to the mix is the new call warrant over Kossan Rubber Industries, KOSSAN-C8, which saw 29.1mil traded for the week, following its listing on Tuesday (16 Jun). Kossan shares closed 7.8% lower w-o-w to RM8.28. 

Meanwhile, warrants over the HSI captured investors’ attention as the HSI futures started the week 2.1% lower on Monday before recovering 2.8% on Tuesday. The futures traded mostly rangebound Wednesday through Thursday, before rising 1.1% on Friday to end the week at 24,610, 1.6% higher w-o-w. 

Call warrants HSI-C9S and HSI-C9T, and put warrant HSI-HAV occupied the top three spots on the most active chart, with 207.2mil, 182.4mil and 90.0mil units traded, respectively. On Monday, call warrant HSI-C9S ended up in the sold out list as investors net bought close to 16mil units of this warrant. On Tuesday, as investors sold back 12mil units, this warrant was removed from the sold out list as the issuer now has inventory to sell. 

Top warrants by volume traded:

Warrant nameVolume
(mil.)
IssuerExercise level / priceExpiry date
HSI-C9S207.2Macquarie27,60028 Aug 2020
HSI-HAV182.4Macquarie20,00030 Oct 2020
HSI-C9T90.0Macquarie26,20028 Aug 2020
FBMKLCI-H8R84.5Maybank1,50830 Oct 2020
TOPGLOV-C7754.3CIMB10.7031 Dec 2020

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 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.

Call warrant HSI-C9T topped the chart

The Malaysia warrants market caught fire last week as the average daily turnover jumped to RM180.7mil, the highest level since Apr 2019. This surge in trading activities despite a shorter trading week in Malaysia in conjunction with the Hari Raya holidays can be attributed to the increase in demand for warrants over Malaysia stocks which made up 84.2% of the total value traded. This also marks the third consecutive week of the Malaysia stocks warrants’ domination of the local warrants market.

Read moreCall warrant HSI-C9T topped the chart

Big rally in glove makers; TOPGLOV-C73 and KOSSAN-C6 in the spotlight 

Warrants Commentary (12 May to 15 May)

Last week, trading in the Malaysian warrants space saw significant improvement, surging 53.5% week-on-week (w-o-w) to RM389.0mil although the Bursa Malaysia only opened for four days as it was shut on Monday (11 May) for the Nuzul al-Quran holiday. Interestingly, warrants over the Malaysian shares were in the spotlight as its trading value spiked 139.8% w-o-w to RM242.8mil, making it the major contributor to last week’s overall warrants turnover. Meanwhile, trading in the Hang Seng Index (HSI) warrants were less active last week, representing 26.1% of turnover, followed by the FBM KLCI (KLCI) warrants which made up approximately 6.9%. 

Read moreBig rally in glove makers; TOPGLOV-C73 and KOSSAN-C6 in the spotlight 

HSI-HAF sustains top position amid holiday-shortened week

The first week of May saw a slight climb in warrants trading activity despite it being another holiday-shortened week as the Malaysian market was closed on Thursday in conjunction with Wesak Day. The total warrants turnover for the week came in at RM257mil, which represented a 14.1% rise compared to the previous week, with warrants over the Hang Seng Index (HSI) taking the top spot with RM111.1mil traded, making up 43.2% of the total warrants turnover, followed by warrants over shares which made up approximately 43.1%, while warrants over the FBM KLCI and S&P 500® Index (SP500) together constituted approximately 13.7%.

Read moreHSI-HAF sustains top position amid holiday-shortened week

Warrants market winds down for long weekend

The last week of April saw a slowdown in warrants trading activity ahead of the long weekend. The Hong Kong market was shut last Thursday for the Birthday of the Buddha i.e. no market making for warrants over the Hang Seng Index (HSI) and iShares China A50 Index ETF, while both the Malaysia and Hong Kong markets were shut last Friday for Labour Day. Average daily turnover for the week clocked in at RM57.9mil per day, a dip from the previous week’s RM83.6mil, with warrants over the HSI taking up 50.5% of total turnover for the week despite the additional day off.

Read moreWarrants market winds down for long weekend

Warrants turnover spike 40% amid volatile markets

Overall markets remained volatile last week as the world is still battling the coronavirus outbreak which has negatively impacted economies across the globe. Recently, China recorded the biggest decline in its 1Q20 gross domestic product (GDP) in decades as the country’s economy slumped by 6.8%, mainly dragged by the pandemic. The International Monetary Fund (IMF) projected that global GDP will shrink 3% this year – compared to its pre-pandemic prediction of a 3.3% expansion. The economic contraction may continue into 2021 should the coronavirus continue to linger, marking the deepest dive since the Great Depression (Bloomberg, 14 Apr).  

Read moreWarrants turnover spike 40% amid volatile markets

HSI-H8M still active but lower turnover as expiry looms

 

The Malaysia warrants market saw softer trading activity last week with RM290.4mil traded, 21.2% lower than the prior week. The decline can be attributed to a shorter trading week for the Hang Seng Index (HSI) as the Hong Kong market was shut on Monday (13 Apr) in conjunction with the Easter holiday. Yet, warrants over the HSI still dominated the warrants space with a RM160.0mil turnover, approximately 56.4% of the total warrants market.

Read moreHSI-H8M still active but lower turnover as expiry looms

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