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Demand surged for call warrants over Mah Sing and Comfort Glove

The Malaysia warrants market saw a steep recovery in terms of turnover last week which saw a total of RM1.0bil. traded compared to RM767.0mil traded the week before. The warrants over Malaysian shares continued to dominate the warrants space with RM992.5mil turnover, representing 98.7% of the total warrants market. In particular, we saw enormous investors interest in call warrants over Mah Sing Group (Mah Sing) and Comfort Glove last week as both underlyings saw their share prices reaching new highs.
macquarie structured warrants 20200914

The Malaysia warrants market saw a steep recovery in terms of turnover last week which saw a total of RM1.0bil. traded compared to RM767.0mil traded the week before. The warrants over Malaysian shares continued to dominate the warrants space with RM992.5mil turnover, representing 98.7% of the total warrants market. In particular, we saw enormous investors interest in call warrants over Mah Sing Group (Mah Sing) and Comfort Glove last week as both underlyings saw their share prices reaching new highs. 

Property developer Mah Sing has proposed to diversify its core businesses to include the manufacturing and trading of gloves and related healthcare products last Thursday (15 Oct). The company in its latest statement to Bursa Malaysia said its indirectly owned unit will buy 12 new glove production lines which can produce up to 3.68bil pieces of gloves a year (The Star, 15 Oct). Mah Sing shares finished unchanged on Thursday following the announcement. However, the share price jumped to its 17-month high at RM0.975 on Friday before closing at RM0.945, which is 37.9% higher w-o-w. Call warrant MAHSING-C24 with an exercise price of RM0.80 was crowned the most popular warrant last week with 285.0mil units traded followed by MAHSING-C23 which ranked fourth with 119.7mil units traded.

Meanwhile, Comfort Glove’s share price gained a whopping 24.0% w-o-w, which outperformed most of its larger glove maker peers. Call warrant COMFORT-CD was the second runner-up on the top 5 most active warrants list with 202.5mil units traded. Investors net bought more than 38mil units of COMFORT-CD throughout the week which resulted in this call warrant being close to sold out. When a warrant is close to sold out, the issuer will typically widen spreads – in this case, by raising the offer price but maintaining the bid price at a fair price – while when a warrant is fully sold out, the issuer can no longer provide an offer price. Despite being sold out, the bid price of COMFORT-CD still tracked the underlying price movement closely to finish 33.3% higher w-o-w. 

Other than that, SUPERMX-C1I and COMFORT-CC are two other call warrants which were in the top active warrants list last week.

Top warrants by volume traded:

Warrant nameVolume
(mil.)
IssuerExercise price / levelExpiry date
MAHSING-C24285.0Ambank0.807 May 2021
SUPERMX-C1I259.1Kenanga14.0026 Jul 2021
COMFORT-CD202.5Macquarie6.5016 Apr 2021
MAHSING-C23119.7RHB0.7027 Apr 2021
COMFORT-CC108.7Kenanga5.0016 Aug 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.

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