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Gloves, HSI warrants continue to take centre stage

As Covid-19 cases in the country and globally continued to mount, there were renewed interest especially in the rubber glove makers which were hard hit over the first quarter of 2021. Shares of glove makers continued to log impressive gains for a third week in a row with Kossan Rubber Industries and Supermax Corporation leading gains, rallying by 13% and 12.1% respectively for the week.
macquarie structured warrants 20200914

Trading activity in the structured warrants scene was slower last week with the overall Malaysia warrants market turnover coming in at RM238.1mil, a 10.2% drop compared to its previous week. Warrants over single stocks remained the major contributor for the week, making up approximately 59.4% of the total turnover at RM141.4mil followed by warrants over the Hang Seng Index (HSI) with RM92.9mil traded (39% of total turnover).

As Covid-19 cases in the country and globally continued to mount, there were renewed interest especially in the rubber glove makers which were hard hit over the first quarter of 2021. Shares of glove makers continued to log impressive gains for a third week in a row with Kossan Rubber Industries and Supermax Corporation leading gains, rallying by 13% and 12.1% respectively for the week. 

Mah Sing Group, which expects to start its rubber glove production next month also advanced 9.8% week-on-week (w-o-w) leading to a surge in trading activity in both its shares and structured warrants over this name. For the week, call warrants SUPERMX-C98 and MAHSING-C32 recorded a total value traded of RM15.1mil and RM8.8mil, with up to 47.2mil and 146.1mil units traded, respectively. 

It was another volatile week for the HSI as it swung within a range of 28,506.76 to 29,319.76 before finishing a second straight week in the green at 29,078.75 (+0.4%). The gains also saw the spot month April futures contract end 0.3% higher at 29,052 with 4 green days out of 5. Prices started off the week on a positive note but tumbled sharply on Wednesday weighed by overnight losses at Wall street. The day saw intense selling pressure with the HSI futures tumbling 1.9% before gaining ground on Thursday through Friday. 

Call warrants HSI-CFK and HSI-CFH and put warrant HSI-HGK were the top traded warrants last week with a combined traded value of RM66.5mil. Investors should note that HSI-HGK is completely sold out and that the issuer can no longer provide an offer price. The bid price, however, will be maintained and will track the underlying price movement accordingly, allowing existing investors to sell back the warrants at a fair price. 

Top warrants by value traded:

Warrant nameValue (’mil.)IssuerExercise level/priceExpiry date
HSI-CFK26.1Macquarie31,00029 Jun 2021
HSI-HGK24.1Macquarie27,00028 May 2021
HSI-CFH16.3Macquarie30,20028 May 2021
SUPERMX-C9815.1Kenanga4.5031 May 2021
MAHSING-C328.8Macquarie0.80011 Jun 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.

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