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:
|Issuer||Exercise level / price||Expiry date|
|HSI-HAV||124.5||Macquarie||20,000||30 Oct 2020|
|HSI-C9T||92.0||Macquarie||26,200||28 Aug 2020|
|TOPGLOV-C81||91.9||CIMB||17.00||31 Dec 2020|
|HSI-C9S||90.6||Macquarie||27,600||28 Aug 2020|
|SUPERMX-C91||68.1||CIMB||4.50||31 Dec 2020|
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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.