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HSI warrants take on centre stage last week

macquarie structured warrants 20200914

The warrants market witnessed an overall lower trading activity last week partly due to the shorter trading week as Bursa Malaysia was shut on Thursday in conjunction with the Malaysia Day holiday. The total warrants turnover for the week came in at RM237.8mil versus RM268.9mil in the previous week, marking an 11.6% drop week-on-week although the average daily turnover jumped 10.6% to RM59.5mil versus RM53.8mil the previous week.

Warrants over the Hang Seng Index (HSI) continued to dominate the weekly turnover, accounting for RM158.9mil which is 66.8% of the overall turnover, owing in part to volatile trading in the underlying. The turbulent week saw the HSI September futures log a four-day losing streak to plumb to its lowest level in 10 months, ending at 24,647 on Thursday before staging a minor rebound to end at 24,883 (+1.0%) on Friday. In total, the week saw the HSI September futures eased by 1,258 points, representing a 4.8% weekly drop.

The holiday shortened week saw active trading mainly on the HSI call warrants which include HSI-CIU, HSI-CIG, HSI-CIQ and HSI-CIL with a combined volume traded of 441.3mil units. HSI-CIU and HSI-CIG occupied the first and second spot in the most active list with 123.3mil and 116.0mil units traded respectively while the put HSI-HG2 came in on third place with 104.1mil units. HSI-HG2 was also the top warrant traded by value, registering up to RM40.1mil in value traded for the week. Meanwhile HSI-CIQ and HSI-CIL saw up to 102.9mil and 99.1mil units exchanged hands. It is good to note that as of the close on Friday, call warrants HSI-CIF, HSI-CIK and HSI-CIQ are fully sold-out while HSI-CIU is currently on low inventory. 

On the local front, call warrant DNEX-CG continued to be in focus with up to 44.1mil units traded as the mother share rallied 6.7% for the week to end Friday at RM0.80. Other popular warrants for the week were AMBANK-C24, JAKS-CD and GREATEC-CJ with total traded volumes of up to 32.7mil, 22.9mil and 21.8mil units respectively.

Top warrants by volume traded:

Warrant nameVolume (‘mil.)IssuerExercise level/priceExpiry date
HSI-CIU123.3Macquarie28,60028 Jan 2022
HSI-CIG116.0Macquarie26,00028 Oct 2021
HSI-HG2104.1Macquarie25,40029 Sep 2021
HSI-CIQ102.9Macquarie29,80030 Dec 2021
HSI-CIL99.1Macquarie27,00029 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.

Volatility in Hong Kong market continues

macquarie structured warrants 20200914

Last week, the Hong Kong market remained volatile as concerns continue over the tightening restrictions by the Chinese government. Trading in warrants over the Hang Seng Index (HSI) remained active as they took up 55.2% of the week’s turnover. The total warrants turnover rose 50.8% week-on-week, partly due to the shorter trading week in the previous week, though the average daily warrants turnover rose 20.6% from RM44.6mil per day in the previous week to RM53.8mil per day last week. 

The HSI kicked off the week on a rather positive note last week, causing bullish investors to collect the HSI put warrants. On Thursday, news broke that the Chinese government will slow down the approval process for online games, causing the HSI to fall 2.3% to 25,716; investors took profit by net selling the HSI puts as they rose with the decline, while net buying the HSI calls, namely 18.5mil in the call warrant HSI-CIF, resulting in this warrant being fully sold out. 

However, the Hong Kong benchmark index managed to stage a 1.9% recovery on Friday to end the week at 26,205.91, netting a 1.2% increase for the week, causing investors to take profit on the HSI calls – HSI-CIF has 16.7mil in inventory once more – while net buying the HSI puts. Put warrant HSI-HG2 and call warrant HSI-CIF topped last week’s chart with 186.9mil and 156.5mil units traded, respectively.

With structured warrants over a wide range of local and foreign underlyings available on Bursa, investors may gain leveraged exposure to the broader local or foreign market with warrants over the indices, while warrants over stocks allow investors to gain leveraged exposure to specific listed companies. 

In Malaysia, warrants over Dagang NeXchange (DNEX) stole the spotlight yet again, with DNEX-CG coming in third last week with 67.4mil units traded. On Thursday, DNEX said it has been notified by the Malaysian Anti-Corruption Commission that several key management personnel of its semiconductor subsidiary SilTerra Malaysia has been arrested for possible graft, though it added that the business operations of SilTerra will not be affected, and there is no financial or operational impact on DNEX from the investigation. DNEX shares fell a slight 0.7% week-on-week to RM0.750.

Other than DNEX, warrants over Malaysian companies such as JAKS Resources, CTOS Digital and Hong Seng Consolidated were popular with investors, while warrants over Hong Kong listed companies such as Meituan and Tencent also saw active trading last week.

Top warrants by volume traded:

Warrant nameVolume (‘mil.)IssuerExercise level/priceExpiry date
HSI-HG2186.9Macquarie25,40029 Sep 2021
HSI-CIF156.5Macquarie28,00028 Oct 2021
DNEX-CG67.4Kenanga1.2030 May 2022
HSI-CIU49.5Macquarie28,60028 Jan 2022
HSI-CIG43.3Macquarie26,00028 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.

Put warrant HSI-HG1 the most active warrant last week

macquarie structured warrants 20200914

The total warrants turnover for the first week of September came in at RM178.3mil which was 26.7% lower versus the previous week due to the public holiday last Tuesday in conjunction with Malaysia’s National Day. Despite its strong performance in the previous week, the local benchmark FBM KLCI was rather subdued for the week ended 3 September 2021 as it pulled back from its closing high of 1,601.38 on 30 Aug to end the week slightly lower at 1,589.19 (-0.1%) as investors continued to focus on the broader market with index warrants taking up 59.4% of the week’s turnover with warrants over the Hang Seng Index (HSI) making up the majority.

The HSI futures clocked in its second weekly gain last week, ending at 25,845 (+1.9%) with four green days out of 5. Despite a choppy start to the week which saw prices swinging between gains and losses on Monday and Tuesday, the index still managed to regain its footing to close higher over the first four days of the trading week, only to lose some momentum on Friday. The overall bullish week saw bargain hunting activities in the put warrants HSI-HG1 and HSI-HG2 as they recorded up to 153.6mil and 58.5mil units being traded respectively with a total combined turnover of RM30.3mil. It is worth noting that both put warrants are expiring on 29 September 2021 and have around three weeks of trading time left. Warrants approaching expiry will experience a higher rate of time decay as compared to longer dated warrants, all other factors held constant. 

Besides that, the holiday shortened week also saw active trading in the call warrants HSI-CIF and HSI-CIQ as they logged up to 80.0mil and 54.5mil units traded, taking up the second and fourth spot in the most active list. Another actively traded HSI warrant was HSI-CIL which registered 48.6mil units traded and was the top warrant traded by value with a total turnover of RM19.9mil.

On the local front, the call warrant over Dagang NeXchange (DNEX), DNEX-CG came in fifth with 50.6mil units traded amid a volatile week as the underlying fell over the week towards a weekly low of RM0.71, only to gain ground on Friday to end the week up by 1.3% at RM0.755. Other actively traded warrants over Malaysian stocks were CTOS-CE and JAKS-CD with a total traded volume of 27.0mil and 23.8mil units traded respectively.

Top warrants by volume traded:

Warrant nameVolume (‘mil.)IssuerExercise level/priceExpiry date
HSI-HG1153.6Macquarie23,40029 Sep 2021
HSI-CIF80.0Macquarie28,00028 Oct 2021
HSI-HG258.5Macquarie25,40029 Sep 2021
HSI-CIQ54.5Macquarie29,80030 Dec 2021
DNEX-CG50.6Kenanga1.2030 May 2022

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.

MYEG-C2B and CTOS-CE up by 26.9% and 33.3%

macquarie structured warrants 20200914

The Malaysia warrants market saw further uptick in terms of trading activities last week, where the total warrants turnover increased 18.2% week-on-week (w-o-w) to RM243.1mil. Warrants over the Hang Seng Index (HSI) appeared to be investors’ favourite with a RM138.8mil turnover, which made up 57.1% of the total warrants market. 

The HSI August futures started the week strong as a result of the Chinese technology stocks rally on Monday and Tuesday due to Tencent’s stock buyback and Cathie Wood’s buying into JD.com after a strong set of results (Business Times, 24 Aug). Despite losing some momentum towards the second half of the week, the HSI August futures is still up 2.4% w-o-w. It was a tug of war between bullish and bearish investors last week as there were 3 HSI calls and 2 HSI puts on the top 5 list of most active structured warrants on Bursa Malaysia. 

Call warrants HSI-CIL, HSI-CIG and HSI-CIQ soared 17.2%, 19.2% and 22.2% last week to track the gains in the underlying index futures. Investors should take note that warrants with higher effective gearing levels tend to experience larger price movements in percentage terms as compared to warrants with lower effective gearing levels, with all other factors kept constant. Meanwhile, bearish investors took the opportunity last week to accumulate a total of 12.1M units of HSI-HG1 as the put warrant finished 42.1% lower w-o-w. Unlike call warrants, put warrant prices will move in the opposite direction with respect to the underlying index/shares.

On the local front, we saw huge demand for call warrants over MY E.G. Services (MYEG) and CTOS Digital (CTOS) as both underlyings recorded their best performance in August last week. MYEG’s share price rallied 10.8% to finish at RM1.92 while CTOS close 9.8% higher w-o-w. MYEG-C2B was the most popular MYEG call warrant as its bid price surged 26.9% higher w-o-w to RM0.165. Meanwhile, bullish investors took large positions in call warrant CTOS-CE, net buying a total of 10.0mil units last week as the bid price of the call warrant jumped 33.3% w-o-w to RM0.120. 


Top warrants by value traded:

Warrant nameValue (RM‘mil.)IssuerExercise level/priceExpiry date
HSI-CIL30.1Macquarie27,00029 Nov 2021
HSI-HG129.5Macquarie23,40029 Sep 2021
HSI-HG216.9Macquarie25,40029 Sep 2021
HSI-CIG16.5Macquarie26,00028 Oct 2021
HSI-CIQ10.7Macquarie29,80030 Dec 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 warrants in the spotlight amid tumultuous week

macquarie structured warrants 20200914

The overall warrants turnover for the week ended 20 August rose by 22% to RM208.4mil, contributed mainly by the index warrants over the Hang Seng Index (HSI) which registered a turnover of RM134.4mil, 64.5% of the total warrants turnover. 

Last week, the Chinese stocks plunged into a bear market as the Chinese regulators once again stepped up their scrutiny on technology companies, implying that Beijing’s wide-ranging corporate crackdown is far from over. Alibaba Group (9988.HK) closed in the red for the entire week, plunging 14.2% week-on-week (w-o-w) while China’s food delivery giant Meituan (3690.HK) fell by 17.1% w-o-w. Meanwhile, the Hong Kong’s flagship HSI slid 1.8% to 24,849.72 last Friday, recording weekly losses of more than 5% w-o-w, while the Hang Seng TECH Index (HSTECH) tumbled 10.5% w-o-w, falling below the 6,000-level to close at 5,895.06 points, down 2.5% on Friday. 

Call warrant HSI-CIF was the top traded warrant, recording the highest trading volume of 128.5mil units. Due to heavy demand from investors, this warrant was already sold out from last Tuesday, investors net bought more than 25.7mil units from the issuer. Investors should exercise caution when trading sold-out warrants as these warrants’ prices may be inflated by other investors queueing and transacting in the market. This means that investors who wish to buy the sold out warrants may be buying the warrants at a much higher price than its fair value. As at the time of writing, other HSI call warrants that are fully sold-out include HSI-CIE and HSI-CIK. Where available, do check the live matrix for a warrant’s fair bid price before trading.

As for the Hong Kong stock warrants, MEITUAN-C4 was the most active for the week, with investors net buying over 5mil out of the 20.7mil units traded. This call warrant tracked the movement of its mother share price closely, slumping 58.3% w-o-w. Bullish or bearish investors may gain leveraged exposure to Hong Kong listed companies with the call and put warrants listed on Bursa.

On the local front, warrants over Dagang NeXchange (DNEX) such as DNEX-CG and DNEX-CF continued to be actively traded by investors, recording a total trading volume of 49.9mil units and 29.2mil units, respectively. It’s mother share, DNEX extended its weekly losses, losing another 6.4% w-o-w. Other warrants over the Malaysian shares that were active last week include JAKS-CD, MYEG-C1T, and MYEG-C1Y. 


Top warrants by volume traded:

Warrant nameVolume (‘mil.)IssuerExercise level/priceExpiry date
HSI-CIF128.5Macquarie28,00028 Oct 2021
HSI-CIQ84.0Macquarie29,80030 Dec 2021
HSI-CIL66.1Macquarie27,00029 Nov 2021
HSI-HGV60.8Macquarie25,80030 Aug 2021
HSI-CIK60.4Macquarie29,00029 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.

Call and put warrants for bullish or bearish views

macquarie structured warrants 20200914

With the public holiday last Tuesday in conjunction with Awal Muharram, total warrants turnover last week saw a 12.5% decline week-on-week (w-o-w), though the average daily turnover rose from RM38.4mil in the previous week to RM42mil last week. As the FBM KLCI continues to languish around the 1,500-level, investors shifted their focus to the broader markets, with index warrants taking up 56.6% of last week’s turnover versus 52.5% in the previous week, and warrants over the Hang Seng Index (HSI) taking up a majority of turnover.

Call warrant HSI-CIK was once again the top warrant with RM22.8mil and 133.8mil units traded. Last week, the HSI kicked off on a strong note, rising for three consecutive days, but failed to maintain its momentum as it fell on Thursday and Friday to end the week at 26,391.62 points, up a slight 0.8% w-o-w. Bullish investors net bought 12mil units of HSI-CIK with the dip, after having sold over 13mil units on Monday and Tuesday with the HSI’s rise. On the flipside, they bought HSI puts such as HSI-HG1 and HSI-HGV as the index rose, and took profit as the index fell later in the week. Hong Kong market sentiments continue to be dampened by the regulators’ heavy scrutiny, with heavyweights such as Alibaba, Tencent and Meituan performing poorly in recent months. Bullish or bearish investors may also gain leveraged exposure to specific Hong Kong listed companies with call and put warrants over Hong Kong shares.

On the local front, warrants over Dagang NeXchange (DNEX) such as DNEX-CG and DNEX-CF were actively traded last week, fuelled by the company’s announcement on Bursa that its unit won a contract valued at RM88mil from the Ministry of Finance in relation to the government’s accounting system. Despite that, DNEX shares fell 4.8% w-o-w last week to RM0.785, failing to maintain its momentum from the strong rally in the previous week. 

Meanwhile, MY E.G. Services (MYEG) also said in a filing to Bursa that it has introduced decentralised finance (“DeFi”) services, leveraging on the power of blockchain technology to bring accessible, affordable and efficient cryptocurrency services, pushing call warrant MYEG-C1T into last week’s top five warrant list as the underlying rose 3.1% w-o-w to finish at RM1.64 on Friday. Other popular Malaysian underlyings last week include Inari Amertron, Greatech Technology and JAKS Resources. 


Top warrants by volume traded:

Warrant nameVolume (‘mil.)IssuerExercise level/priceExpiry date
HSI-CIK133.8Macquarie29,00029 Nov 2021
HSI-CIF102.1Macquarie28,00028 Oct 2021
DNEX-CG84.0Kenanga1.2030 May 2022
HSI-CIE63.7Macquarie30,00028 Oct 2021
MYEG-C1T60.7Maybank2.2228 Feb 2022

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 warrants dominate warrant activity last week

macquarie structured warrants 20200914

Trading activity in the warrants space was rather subdued in the first week of August compared to its previous week with the overall warrants turnover clocking in at RM192mil, down by 22.3% week-on-week (w-o-w). Despite the steep selloff in the previous week, the local benchmark FBM KLCI showed no signs of rebound just yet as prices continued to flirt around its nine-month low, ending its second straight week in the red at 1,489.80, down by 0.3% w-o-w. Market sentiment was rather dampened by the on-going political uncertainty coupled with the worsening Covid-19 situation in the country with total cases setting a record high and blowing past 20,000 cases on Thursday. 

For the week, warrants over the indices contributed up to 52.5% of the overall turnover with the remaining coming from warrants over single stocks. The Hang Seng Index (HSI) warrants recorded RM94.6mil in total value traded last week, representing 49.3% of the weekly turnover. Among the top active for the week were the HSI call warrants namely HSI-CIK, HSI-CIF and HSI-CIE with a traded volume of up to 137.8mil, 97.8mil and 82.9mil units respectively as the underlying HSI futures posted a weekly gain of 0.9% to end Friday at 26,129, rebounding from its previous weeks’ brutal selloff. HSI-CIK and HSI-CIF were also the top two warrants traded by value, recording up to RM23.4mil and RM19.6mil in value traded for the week.

Meanwhile on the local scene, call warrant JAKS-CD was in focus with up to 70.5mil units changing hands as its underlying lost ground to post a second straight weekly drop to close at RM0.48 (-2.0% w-o-w). The fifth spot in the most active list was DNEX-CG, logging a total 51.5mil units traded with up to RM3.6mil in value after its mother share jumped 14.6% for the week. Among other warrants that were also actively traded last week were put warrant HSI-HGV and call warrant HARTA-C79 with up to 43.7mil and 41.7mil units traded each. HARTA-C79 saw active trading on Tuesday after the company reported record earnings which saw its 1Q2021 net profit double to RM2.26bil despite lower average selling prices.


Top warrants by volume traded:

Warrant nameVolume (‘mil.)IssuerExercise level/priceExpiry date
HSI-CIK137.8Macquarie29,00029 Nov 2021
HSI-CIF97.8Macquarie28,00028 Oct 2021
HSI-CIE82.9Macquarie30,00028 Oct 2021
JAKS-CD70.5Kenanga0.8828 Mar 2022
DNEX-CG51.5Kenanga1.2030 May 2022

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 calls popular amid Hong Kong market selldown

macquarie structured warrants 20200914

Last week, the Malaysia warrants market saw a surge in trading interest as the weekly turnover jumped 79.5% week-on-week (w-o-w) to RM247.0mil, out of which the Hang Seng Index (HSI) warrants contributed to 50.7% of the total turnover with RM125.3mil traded. 

Bullish investors were accumulating HSI call warrants last Monday and Tuesday as the HSI futures plunged more than 2,200 points on the first 2 trading days of the week to finish at 24,972 on Tuesday, the lowest level since 5 November 2020. A selloff in Chinese private education companies last Monday sent shockwaves through the equity market in China and Hong Kong as investors scrambled to price in growing risks from an intensifying crackdown by Beijing on the nation’s industries, which include the technology and property sector (Bloomberg, 26 Jul). More than half a dozen HSI call warrants were sold out at the end of the trading day on Tuesday. Investors should trade warrants that are sold out or close to being sold out with caution. 

On Thursday, China stepped up attempts to calm investors’ nerves after the recent market rout by informing foreign brokerages not to “overinterpret” its latest regulatory actions, setting the stage for a rebound in the beaten-down Chinese and Hong Kong stocks (Bloomberg, 29 Jul). The top traded call warrants HSI-CIK and HSI-CIF saw their bid prices rebound to RM0.205 and RM0.250 respectively on Thursday, which is 70.8% and 72.4% higher from Tuesday’s close, tracking the 1,231 points recovery in the HSI futures over the same period. There was also a HSI put warrant which made it to the top 5 warrants list last week. HSI-HGV recorded a large 214.3% weekly gain as the HSI futures finished 4.8% lower w-o-w.

Last Friday, the local benchmark FBMKLCI futures finished below the 1,500 level for the first time since November 2020, fuelled by growing political uncertainty and the rising number of Covid cases in Malaysia in the past week. Call warrant DNEX-CF with an exercise of RM0.900 was the most popular warrant over local stocks with a turnover of RM11.6mil. Investors also showed interest in other DNEX call warrants, namely DNEX-CG, DNEX-CA, and DNEX-CB.

Top warrants by value traded: 

Warrant nameValue
(RM’mil.)
IssuerExercise level/priceExpiry date
HSI-CIK35.1Macquarie29,00029 Nov 2021
HSI-CIF30.8Macquarie28,00028 Oct 2021
HSI-HGV14.8Macquarie25,80030 Aug 2021
HSI-CIG13.2Macquarie26,00028 Oct 2021
DNEX-CF11.6Kenanga0.90030 May 2022

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.

Warrants over HSI, DNEX and JAKS in the spotlight

macquarie structured warrants 20200914

Last week, despite a shorter week in conjunction with the Hari Raya Haji holiday on Tuesday (20 July), overall warrants turnover surged 85.7% week-on-week (w-o-w) to RM243.5mil due to the increased turnover in warrants over indices (+91% w-o-w) and single stocks (+83% w-o-w).  

The Hong Kong’s Hang Seng Index (HSI) traded below the 28,000 level and was mostly in the red last week, resulting in a weekly loss of 2.4% as it closed 1.5% lower on Friday at 27,321.98 points, wiping its previous day’s 1.8% rally. HSI’s bearish move was on the back of lingering concerns about Beijing’s crackdown against internet-platform companies along with the increased Delta variant Covid cases globally (South China Morning Post, 23 July).

Call warrant HSI-CFR (-75.9% w-o-w) was the most active warrant as investors net bought 5.9mil units out of 121.7mil units traded, followed by put warrant HSI-HGR (+27.3% w-o-w) which recorded a total trading volume of 116.6 mil units. Investors trading these warrants should trade with caution as they are expiring on Thursday (29 July). All warrants listed on Bursa will have a last trading day, which is the last day that investors can buy or sell the warrants before they expire. The last trading day falls two days before the warrants’ expiry date – in this instance, HSI-CFR and HSI-HGR’s last trading day is on Tuesday (27 July). 

Meanwhile, TENCENT-C11 was top traded among warrants over the Hong Kong shares, recording a trading volume of 10mil units. The warrant fell 33.3% w-o-w as its mother share Tencent Holdings (700 HK) fell 5.9% w-o-w. 

On the local front, call warrant over JAKS Resources (JAKS), JAKS-CD was in the spotlight as investors traded 116.6mil units, placing it third on the top warrants list. Its mother share reversed the previous week’s lacklustre performance, rallying to trade above the RM0.500 mark and closing at RM0.520 (-1.0%) last Friday, 8.3% higher w-o-w. Other popular warrants include warrants over Dagang NeXchange (DNEX) namely DNEX-CF and DNEX-CG with both registering trading volumes of 91.0mil units and 65.2mil units, respectively. Similarly, DNEX rose 4.0% w-o-w, closing at RM0.770 (-0.7%) on Friday. 

Top warrants by volume traded: 

Warrant nameVolume
(’mil.)
IssuerExercise level/priceExpiry date
HSI-CFR121.7Macquarie27,60029 Jul 2021
HSI-HGR116.6Macquarie26,80029 Jul 2021
JAKS-CD94.0Kenanga0.88028 Mar 2022
DNEX-CF91.0Kenanga0.90030 May 2022
DNEX-CG65.2Kenanga1.2030 May 2022

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.

Dagang NeXchange warrants in focus as underlying rises 10.3% for the week

macquarie structured warrants 20200914

Last week’s warrant trading activity rose a slight 1.2% to RM131.2mil, with warrants over shares making up 61.3% of total turnover. Index warrants took a step back this week, with warrants over the Hang Seng Index (HSI) contributing 36.0% of turnover, and the remaining largely taken up by warrants over the local benchmark FBM KLCI and the S&P 500® Index.

On the local front, warrants over Dagang NeXchange (DNEX) were popular with investors last week as its share price had a stellar performance, rising 10.3% week-on-week (w-o-w) to end the week at RM0.750, resulting in increased focus on DNEX warrants, namely DNEX-CG and DNEX-CF. DNEX-CG came in third on the top traded list with 60.7mil units traded for the week. 

Other than that, there was increased activity in warrants over glove makers Supermax and Top Glove as the nation continues to battle the Covid-19 pandemic, reporting a new record high of 13,215 new Covid cases on Thursday last week. Top Glove shares rose 3.9% w-o-w to RM3.97, with call warrant TOPGLOV-C1R coming in fifth on the traded list. TOPGLOV-C1R has a lower exercise price of RM3.88 and is currently the only in-the-money Top Glove call warrant listed on Bursa. These underlyings overperformed the FBM KLCI, which rose a slight 0.1% w-o-w to end the week at 1,522.48 points.

As for the HSI, the index managed to rise to above the 28,000-level last week after being beaten down in the previous week, ending the week at 28,004.68 points, 2.4% higher w-o-w with four of five trading days in the green. Put warrant HSI-HGR was the most active warrant by volume for the week with 97.3mil units traded, while call warrants HSI-CFW and HSI-CFQ took the second and fourth spot with 60.7mil and 44.2mil units traded, respectively. Investors should note that HSI-HGR and HSI-CFQ will expire on 29 July 2021, with their last trading date on 27 July 2021, meaning investors would not be able to buy or sell the warrants after this date. Further, the call warrants over Geely Automobile Holdings (175 HK; a constituent of the HSI) GEELY-C4 and GEELY-C5 saw more than 7mil units traded each as Geely shares rose 3.0% for the week to end the week at HKD24.35.

Top warrants by volume traded: 

Warrant nameVolume
(’mil.)
IssuerExercise level/priceExpiry date
HSI-HGR97.3Macquarie26,80029 Jul 2021
HSI-CFW60.7Macquarie30,40030 Aug 2021
DNEX-CG51.2Kenanga1.2030 May 2022
HSI-CFQ44.2Macquarie29,60029 Jul 2021
TOPGLOV-C1R40.8Macquarie3.8831 Jan 2022

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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