The second week of October saw a higher total warrants turnover as the action continues with glove makers Supermax Corporation and Top Glove Corporation still in the spotlight, both ending the week on a positive note. The overall warrants turnover came in at RM761.9mil, which represented an 11.8% jump versus the previous week as warrants over Malaysian shares remained the major contributor to the turnover making up 91.3% of the overall warrants market share.
Call warrant SUPERMX-C1I topped the list for being the most actively traded warrant last week as up to a total of 260.1mil units exchanged hands. Meanwhile SUPERMX-C1L and SUPERMX-C1E made their way to secure the fourth and fifth spot on the most active list with a total of 73.0mil and 72.7mil units traded, respectively as the underlying ended its third straight week in the green. The shares of Supermax had earlier in the week notched a high of RM9.91 on Tuesday but lost steam in the next few days, though still finishing the week 6.2% higher week-on-week (w-o-w) at RM9.54.
On the local front as well, call warrant MYEG-C87 came in at second place with a total 138.9mil units traded as its underlying saw a 2.2% weekly gain, ending at RM1.40. Prices have on Friday rallied to an intraday high of RM1.46 but eventually lost its footing towards the closing bell. The electronic government services provider had received a letter of acceptance from the Ministry of Health to provide an online payment system for COVID-19 tests for inbound travellers (The Edge Markets, 8 Oct).
Besides that, call warrant TOPGLOV-C81 landed on third place last week with a total 94.7mil units traded. The December 2020 expiry call warrant was also the top warrant traded by value with a total traded value of RM62.0mil. Other than warrants over glove makers, the index warrants close to expiry HSI-HAY and HSI-C9V (October 2020 expiry) were also among the popular warrants last week with up to 49.9mil and 46.7mil units traded, respectively. Investors should practice caution when trading warrants expiring soon as shorter dated warrants will experience steeper time decay than longer dated warrants, which is an additional holding cost for investors.
Top warrants by volume traded:
| Warrant name | Volume (mil.) | Issuer | Exercise price | Expiry date |
| SUPERMX-C1I | 260.1 | Kenanga | 14.00 | 26 Jul 2021 |
| MYEG-C87 | 138.9 | Kenanga | 1.20 | 12 Oct 2020 |
| TOPGLOV-C81 | 94.7 | CIMB | 5.6667 | 31 Dec 2020 |
| SUPERMX-C1L | 73.0 | Macquarie | 15.50 | 16 Apr 2021 |
| SUPERMX-C1E | 72.7 | Ambank | 14.00 | 30 Apr 2021 |
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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.
