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HSI calls and puts top the list amid volatile market

macquarie structured warrants 20200914

The warrants market saw a dip in the turnover for the week ended 26 June, falling 42.9% week-on-week (w-o-w) to RM392.2mil. Warrants over Malaysian shares again took up the majority of trading in the warrants space, making up 58.3% of total turnover, while warrants over index underlying took up the remaining 41.7%. 

Despite the Hong Kong market having a shorter trading week in conjunction with the Tuen Ng Festival last Thursday, warrants over the Hang Seng Index (HSI) i.e. HSI-HAV (put warrant) and HSI-C9S (call warrant) emerged as the most popular warrants, recording a total trading volume of 164.6mil units and 163.1mil units, respectively. Investors had mixed views over the HSI as they net bought 11.1mil units of HSI-HAV and 13.5mil units of HSI-C9S. 

It was a roller coaster ride for the Hong Kong market last week with the index having a big upswing on Tuesday, surging 1.6% to close at 24,907.34 points following Trump’s statement clarifying that the US-China trade deal was still fully intact. The US President tweeted to deny a news piece, which took US trade advisor Peter Navarro’s statement “out of context” to state that the trade deal was over. However, the HSI then declined a total 1.4% over the next two trading days (Wednesday, 24 June and Friday, 26 June) to close at 24,549.99 points last Friday, down 0.4% w-o-w. 

On the local front, the temporary suspension of short selling, which was to end on 30 June 2020, has been extended to 31 December 2020. This move was introduced by the Securities Commission and Bursa Malaysia back in March as a measure to stabilise the stock market and to reduce distortion of share prices caused by heightened volatility in the market due to the Covid-19 pandemic.  

Trading wise, a put warrant over FBM KLCI, FBMKLCI-H8R, garnered good demand, with bearish investors trading 30.7mil units. The FBM KLCI slipped 1.3% to close below the 1,500-level last week, finishing at 1,488.14 points.  Meanwhile, SUPERMX-C91, FGV-C95 and VS-C30 were among investors’ favorites last week, recording trading volumes of 29.1mil, 26.8mil and 26.4mil units, respectively. 

Top warrants by volume traded:

Warrant nameVolume
(mil.)
IssuerExercise level / priceExpiry date
HSI-HAV164.6Macquarie20,00030 Oct 2020
HSI-C9S163.1Macquarie27,60028 Aug 2020
HSI-C9T74.6Macquarie26,20028 Aug 2020
FBMKLCI-H8R30.7Maybank1,50828 Aug 2020
SUPERMX-C9129.1CIMB4.5031 Dec 2020

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. 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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