Follow Us For The Latest Updates

Follow Us For The Latest Updates

Glove makers continue to take centre stage

macquarie structured warrants 20200914

Warrants Commentary (9 Jun to 12 Jun)

The second week of June saw the total warrants turnover coming in at a staggering RM699.4mil despite it being a holiday-shortened week as the Bursa Malaysia was shut on Monday (8 Jun) for the official birthday of the Yang di-Pertuan Agong.  Warrants over Malaysian shares took the spotlight last week, with a trading value of RM573.5mil, making it the major contributor to the overall warrants turnover. This was followed by warrants over the Hang Seng Index (HSI) with a value traded of RM82.1mil, representing approximately 11.7% of the total warrants turnover while warrants over the FBM KLCI, S&P 500® Index (SP500) and iShares FTSE A50 China Index ETF constituted approximately 6.3% with a value traded of RM43.8mil.

It was another volatile week for the markets roiled by fears of economic uncertainty amid a resurgence of Covid-19 cases in the US, coupled with the grim US economic forecast by the Fed, as major benchmarks such as the Dow Jones Industrial Average and the SP500 snapped their three-week winning streak to finish the week down by 5.6% and 4.8% respectively. The HSI futures was not spared either as it ended the week in red territory, down by almost 2% to 24,212.0. Although the HSI futures moved higher the first three days of the week, the upbeat momentum was halted on Thursday through Friday as prices succumbed to furious selling activities, wiping all of its gains for the week.

Amidst the turmoil, put warrant HSI-HAV (+3.6% week-on-week (w-o-w)) dominated the warrants space as the most actively traded warrant with 102.1mil units or RM29.6mil traded for the week. Call warrant HSI-C9S was also among the most actively traded warrants with 67.3mil units changing hands as investors net bought up to 14.9mil units for the week. HSI-C9S saw a turnover of RM9.1mil as it tumbled 32.5% w-o-w.

On the local front, warrants over glove makers continued to dominate the warrants market with TOPGLOV-C78 and TOPGLOV-C77 clocking in 78.2mil units (RM54.8mil) and 70.9mil units (RM57.8mil) traded respectively, as the stock continued to scale fresh peaks, closing 3.2% up for the week at RM16.90 after it reported its net profit rising more than fourfold in Q3 ended 31 May 2020. SUPERMX-C93 was also actively traded with 55.1mil units changing hands as the stock tumbled 10.9% w-o-w to close at RM7.91 on Friday.

Top warrants by volume traded:

Warrant nameVolume
(mil.)
IssuerExercise level / priceExpiry date
HSI-HAV102.1Macquarie20,00030 Oct 2020
TOPGLOV-C7878.2Maybank14.0026 Feb 2021
TOPGLOV-C7770.9CIMB10.7031 Dec 2020
HSI-C9S67.3Macquarie27,60028 Aug 2020
SUPERMX-C9355.1Maybank7.0026 Feb 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 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.

Share:

Share on facebook
Share on twitter
Share on linkedin
Share on telegram

More Posts

Serba Dinamik Holdings Berhad

The latest win is a testament of Serba Dinamik’s position as one of the major
players in the oil & gas industry. Assuming a burn rate of approximately RM400.0m
in December 2020, Serba Dinamik’s outstanding orderbook will come at RM18.3bn
by end-2020; within our assumption of RM18.5bn.

market pulse

Commendable breakthrough

The FBM KLCI delivered another commendable performance amid optimism that
Malaysia economy is widely touted to emerge from the Covid-19 pandemic slump
following the recent progress of Covid-19 vaccine developments. Still, we reckon
that the strong upsides may also attract quick profit taking activities over the
interim. At the same time, the lower liners are set for the extended rally that is
largely driven by the ample of liquidity as investors continue to seek for higher
yields investments.

market pulse

Market momentum still sturdy

The FBM KLCI edged mildly lower as sentiment turned downbeat as investors booked in gains from the previous session rally. While the local bourse is demonstrating some mild weakness, we reckon that the general recovery trend is still intact as the attention remains focus on the pace of economic recovery. The positive development over the Covid-19 vaccine will also continue to aid the recovery progress. Meanwhile, the lower liners are expected to charge higher, driven by the ample liquidity with the equities market remain in favour.

AME Elite Consortium Bhd – 2nd Dec 20

The proposed AME REIT would also provide stable and recurring income to investors, with at least 90.0% of its income to be distributed as dividends to unitholders. We note that slightly more than half of the current tenants of the industrial properties has more than 5 years of lease under their agreements. Additionally, AME REIT is expected to benefit from lower tax rate compared to prevailing corporate tax rate at an average of 23.4% recorded over the past 4 years.

glove-makers-continue-to-take-centre-stage-m-online