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HSI warrants dominate warrant activity last week

Trading activity in the warrants space was rather subdued in the first week of August compared to its previous week with the overall warrants turnover clocking in at RM192mil, down by 22.3% week-on-week (w-o-w). Despite the steep selloff in the previous week, the local benchmark FBM KLCI showed no signs of rebound
macquarie structured warrants 20200914

Trading activity in the warrants space was rather subdued in the first week of August compared to its previous week with the overall warrants turnover clocking in at RM192mil, down by 22.3% week-on-week (w-o-w). Despite the steep selloff in the previous week, the local benchmark FBM KLCI showed no signs of rebound just yet as prices continued to flirt around its nine-month low, ending its second straight week in the red at 1,489.80, down by 0.3% w-o-w. Market sentiment was rather dampened by the on-going political uncertainty coupled with the worsening Covid-19 situation in the country with total cases setting a record high and blowing past 20,000 cases on Thursday. 

For the week, warrants over the indices contributed up to 52.5% of the overall turnover with the remaining coming from warrants over single stocks. The Hang Seng Index (HSI) warrants recorded RM94.6mil in total value traded last week, representing 49.3% of the weekly turnover. Among the top active for the week were the HSI call warrants namely HSI-CIK, HSI-CIF and HSI-CIE with a traded volume of up to 137.8mil, 97.8mil and 82.9mil units respectively as the underlying HSI futures posted a weekly gain of 0.9% to end Friday at 26,129, rebounding from its previous weeks’ brutal selloff. HSI-CIK and HSI-CIF were also the top two warrants traded by value, recording up to RM23.4mil and RM19.6mil in value traded for the week.

Meanwhile on the local scene, call warrant JAKS-CD was in focus with up to 70.5mil units changing hands as its underlying lost ground to post a second straight weekly drop to close at RM0.48 (-2.0% w-o-w). The fifth spot in the most active list was DNEX-CG, logging a total 51.5mil units traded with up to RM3.6mil in value after its mother share jumped 14.6% for the week. Among other warrants that were also actively traded last week were put warrant HSI-HGV and call warrant HARTA-C79 with up to 43.7mil and 41.7mil units traded each. HARTA-C79 saw active trading on Tuesday after the company reported record earnings which saw its 1Q2021 net profit double to RM2.26bil despite lower average selling prices.


Top warrants by volume traded:

Warrant nameVolume (‘mil.)IssuerExercise level/priceExpiry date
HSI-CIK137.8Macquarie29,00029 Nov 2021
HSI-CIF97.8Macquarie28,00028 Oct 2021
HSI-CIE82.9Macquarie30,00028 Oct 2021
JAKS-CD70.5Kenanga0.8828 Mar 2022
DNEX-CG51.5Kenanga1.2030 May 2022

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

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