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HSI warrants and DNEX-CA among most active last week

Among the top active for the week were the HSI warrants, namely the July expiry call warrant HSI-CFQ and put warrant HSI-HGR with a total traded volume of 74.9mil and 51.7mil units respectively, despite the market holiday in Hong Kong on Thursday in conjunction with the HKSAR Establishment Day.
macquarie structured warrants 20200914

The overall warrants trading activity was rather subdued last week versus the previous week with the total warrants turnover clocking in at RM80.6mil. Sentiments continued to be cautious amid reports of high Covid-19 cases and deaths despite the extensions of the nationwide lockdown dubbed movement control order (MCO) 3.0. The benchmark FBMKLCI ended its second consecutive week in the red territory, down 1.7% to 1,533.35, its lowest level in almost eight months.

For the week, warrants over single stocks were the major contributor with RM44.1mil traded, representing 54.7% of the total warrants turnover, while warrants over the Hang Seng Index (HSI) contributed 37.7% with its total turnover registering RM30.4mil in value traded. Among the top active for the week were the HSI warrants, namely the July expiry call warrant HSI-CFQ and put warrant HSI-HGR with a total traded volume of 74.9mil and 51.7mil units respectively, despite the market holiday in Hong Kong on Thursday in conjunction with the HKSAR Establishment Day. The holiday-shortened week saw the HSI tumble over all four trading days to end the week at 28,310.43, down by 3.3% week-on-week (w-o-w).

Over on the local front, warrants over Dagang NeXchange (DNEX) took the spotlight with DNEX-CA logging 24.4mil units in total volume traded with up to RM2.4mil in value. Meanwhile, call warrants over glove names, TOPGLOV-C1L and SUPERMX-C1Z came in at 23.8mil and 20.2mil units traded respectively. 

The world’s biggest glovemaker Top Glove Corporation (TOPGLOV) extended losses to close a sixth straight week in the red, down by 7.8% w-o-w to RM4.01, its lowest since June 2020, while Supermax Corporation (SUPERMX) fell by 4.4% for the week to RM3.23, also plumbing its lowest level in more than 12 months as concerns on overcapacity and rising pressure over selling prices of gloves continued to weigh on the glove counters.

Top warrants by value traded:

Warrant nameVolume (‘mil.)IssuerExercise level/priceExpiry date
HSI-CFQ74.9Macquarie29,60029 Jul 2021
HSI-HGR51.7Macquarie26,80029 Jul 2021
DNEX-CA24.4RHB0.9028 Mar 2022
TOPGLOV-C1L23.8Macquarie4.888 Oct 2021
SUPERMX-C1Z20.2CIMB5.3530 Sep 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]

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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. The Warrants will not be offered to any US persons.


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