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Higher warrants turnover for the week; US election outcome in focus

The overall warrants turnover for first week of November jumped by approximately 17.9%, surging to RM868.7mil from RM736.9mil a week ago. The event-packed week saw warrants over Malaysian shares still dominating the total turnover, making up approximately 86.4% of the total warrants turnover at RM750.6mil, followed by warrants over the Hang Seng Index
macquarie structured warrants 20200914

The overall warrants turnover for first week of November jumped by approximately 17.9%, surging to RM868.7mil from RM736.9mil a week ago. The event-packed week saw warrants over Malaysian shares still dominating the total turnover, making up approximately 86.4% of the total warrants turnover at RM750.6mil, followed by warrants over the Hang Seng Index with RM57.8mil (6.7%) and other warrants over indices and foreign underlyings which made up the balance.

With the US presidential election taking on centre stage, warrants over the S&P 500® Index (SP500) continued to see interests. The SP500 took a sharp V-shaped rebound to end the week 7.3% higher at 3,509.44, erasing all its previous week’s losses in its biggest weekly rally since April as Democrat Joe Biden edges closer towards defeating Republican Donald Trump. Call warrant SP500-CN took the top spot for the top SP500 warrant traded by value with RM9.6mil followed by put warrant SP500-HN at RM6.7mil. The call and put warrants over the SP500 allow bullish and bearish investors to trade the U.S. market during the Bursa trading hours. Call warrants move in line with the underlying while put warrants move in an opposite direction to the underlying. 

On the local front, warrants over GD Express Carrier (GDEX) took on the spotlight last week, with GDEX-CS, GDEX-CT and GDEX-CU topping the most active list with a total volume traded of 226.1mil, 208.3mil and 185.4mil units respectively after its shares jumped 30.7% to finish at RM0.490 on Monday. The euphoria however was short-lived as the stock retreated to close at RM0.395 (-19.4%) on Tuesday after hitting an intraday high of RM0.545, its highest since April 2018, before ending the week at RM0.400. 

Also on the top active list were call warrants COMFORT-CC and MAHSING-C24 with a total traded volume of 155.7mil and 152.5 mil units respectively as both underlyings were up for the week. Comfort Gloves saw its share price surge by 11.1% to close at RM4.39 while Mah Sing Group finished 7.7% higher at RM0.980 after a volatile week. 

Meanwhile, the Hang Seng Index (HSI) futures also saw a fantastic week, climbing by 6.5% week-on-week (w-o-w) to end at 25,718.0, recouping all its previous week’s losses. The surge saw fresh interests particularly in the HSI put warrants with HSI-HDE and HSI-HDI clocking in up to 147.2mil and 85.4mil units traded, respectively.  

Top warrants by volume traded:

Warrant nameVolume
(mil.)
IssuerExercise level/priceExpiry date
GDEX-CS226.1RHB0.40027 Apr 2021
GDEX-CT208.3Ambank0.4507 May 2021
GDEX-CU185.4Kenanga0.5006 Sep 2021
COMFORT-CC155.7Kenanga5.0016 Aug 2021
MAHSING-C24152.5Ambank0.8007 May 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.

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