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

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.
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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