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 [email protected].

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

market pulse

Still within consolidation mode

The FBM KLCI settled in red in tandem with the regional peers as selling pressure in the glove stocks returned, offsetting the gains on the banking heavyweights following the unchanged Overnight Policy Rate (OPR) by Bank Negara Malaysia. Tracking the losses on Wall Street overnight, we expect the local bourse may continue to consolidate further as market players are likely to trade on a cautious tone on the broader market. Nevertheless, we expect traders to position themselves for the recovery theme as Covid-19 vaccination is taking place. Meanwhile, the Brent oil price has surged firmly above USD65.

market pulse

Bank Negara’s OPR in focus

Bargain hunting activities emerged on the glove counters after more than one week of pullback, lifting the FBM KLCI and the healthcare sector higher. Market will be looking forward to the second Monetary Policy Committee meeting today to gauge market movements. However, economists anticipate an unchanged stance on the Overnight Policy Rate (OPR) amid expectation of an economic recovery. We believe the lower liners will continue to remain upbeat if the positive market sentiment persists. Meanwhile, the Brent oil price has seen a rebound.

market pulse

Streched valuations

Bucking the downturn across the regional markets, the FBM KLCI ended modestly higher as continued selling in glove heavyweights were offset by buying support in IHH and selected banking heavyweights. We believe the local bourse should trade in an upward bias tone following the change of MCO status for Selangor, Johor, Penang and KL. Meanwhile, the number of Covid-19 confirmed cases daily has dropped to year-to-date low. However, note that the negative sentiment on Wall Street overnight could cap the upside potential on the local front.

technical focus

Technical Focus – LHI

One of the largest fully integrated producers of poultry, eggs and livestock feed in Southeast Asia with strong presence in Malaysia, Indonesia, Vietnam and Singapore. Committed to expand the Malaysia, Philippines and Vietnam operations via additional capacities and infrastructures, whilst targets 160 Baker’s Cottage outlets by end-FY21 (from 103 outlets since end-FY20). Sequential earnings recovery is on the table, premised to the stabilising poultry prices in Malaysia as well as Indonesia in recent months. Technically, the flag-formation breakout above RM0.71 may lead price towards the immediate resistances at RM0.775-0.82, with long term target at RM0.885.