Follow Us For The Latest Updates

Follow Us For The Latest Updates

Higher volumes on greater volatility in HSI

Warrants Commentary (10 June to 14 June)

Following the 2.5-day trading week in the previous week due to the Hari Raya, the warrants market saw a healthy boost last week as traders returned from the holidays, amassing a total turnover of RM493.5mil or an average of RM98.7mil per day.

The Hang Seng Index (HSI) experienced great volatility last week as, in addition to the continuing US-China trade dispute, Hongkongers took the streets to protest the controversial extradition bill, an initiative by the Hong Kong government. The index made some big moves last week, including rising 2.3% on Monday, falling 1.7% on Wednesday and losing 0.7% on Friday. The HSI ultimately ended the week 0.6% higher week-on-week (w-o-w) at 27,118.4 points.

Put warrant HSI-H6P was the most popular warrant last week with 318.1mil units traded. Last Wednesday, as the HSI fell, this put warrant saw over 73mil units traded, rising 24.1% to RM0.335 as put warrants move in an opposite direction to the underlying. As the week continued on, the warrant continued to be widely traded, with over 100mil units traded on Thursday itself. Meanwhile, the call warrant HSI-C5P came in second last week with 279.5mil units traded as the warrant price rose 2.3% w-o-w, in line with the increase in the HSI, as call warrants move in tandem with the underlying. Both these top warrants will expire on 27 September 2019.

On the local front, TM-C41, a call warrant over telecommunications giant Telekom Malaysia (TM), was the top traded stock warrant as its underlying share price were up for four consecutive days from Monday to Thursday last week, rising a total of 8.2% as speculations continued on who would become TM’s permanent chief executive officer (CEO). On Thursday, TM finally announced the appointment of Dato’ Noor Kamarul Anuar Nuruddin as its new managing director and group CEO. TM shares fell a slight 0.3% on Friday to end the week at RM3.80, up 8.0% week-on-week (w-o-w).

Call warrant TM-C41 correspondingly rose from Monday to Thursday, and closed unchanged on Friday, ending the week 36.8% higher at RM0.130. Warrants move in larger percentages than its underlying due to the gearing effect, allowing investors higher profit potential, though that also means a higher level of risk.

Top warrants by volume traded:

Warrant nameVolume
IssuerExercise levelExpiry date
HSI-H6P318.1Macquarie24,80027 Sep 2019
HSI-C5P279.5Macquarie29,60027 Sep 2019
HSI-C5J186.2Macquarie28,80030 Jul 2019
HSI-H6N156.0Macquarie25,40030 Jul 2019
HSI-H6Q128.3Macquarie26,20027 Sep 2019

If you have any questions or need further assistance, please do not hesitate to contact us via email us at

To view the full list of structured warrants available on Bursa Malaysia, kindly visit

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 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.