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HSI warrants in the spotlight amid tumultuous week

On the local front, warrants over Dagang NeXchange (DNEX) such as DNEX-CG and DNEX-CF continued to be actively traded by investors, recording a total trading volume of 49.9mil units and 29.2mil units, respectively. It’s mother share, DNEX extended its weekly losses, losing another 6.4% w-o-w.
macquarie structured warrants 20200914

The overall warrants turnover for the week ended 20 August rose by 22% to RM208.4mil, contributed mainly by the index warrants over the Hang Seng Index (HSI) which registered a turnover of RM134.4mil, 64.5% of the total warrants turnover. 

Last week, the Chinese stocks plunged into a bear market as the Chinese regulators once again stepped up their scrutiny on technology companies, implying that Beijing’s wide-ranging corporate crackdown is far from over. Alibaba Group (9988.HK) closed in the red for the entire week, plunging 14.2% week-on-week (w-o-w) while China’s food delivery giant Meituan (3690.HK) fell by 17.1% w-o-w. Meanwhile, the Hong Kong’s flagship HSI slid 1.8% to 24,849.72 last Friday, recording weekly losses of more than 5% w-o-w, while the Hang Seng TECH Index (HSTECH) tumbled 10.5% w-o-w, falling below the 6,000-level to close at 5,895.06 points, down 2.5% on Friday. 

Call warrant HSI-CIF was the top traded warrant, recording the highest trading volume of 128.5mil units. Due to heavy demand from investors, this warrant was already sold out from last Tuesday, investors net bought more than 25.7mil units from the issuer. Investors should exercise caution when trading sold-out warrants as these warrants’ prices may be inflated by other investors queueing and transacting in the market. This means that investors who wish to buy the sold out warrants may be buying the warrants at a much higher price than its fair value. As at the time of writing, other HSI call warrants that are fully sold-out include HSI-CIE and HSI-CIK. Where available, do check the live matrix for a warrant’s fair bid price before trading.

As for the Hong Kong stock warrants, MEITUAN-C4 was the most active for the week, with investors net buying over 5mil out of the 20.7mil units traded. This call warrant tracked the movement of its mother share price closely, slumping 58.3% w-o-w. Bullish or bearish investors may gain leveraged exposure to Hong Kong listed companies with the call and put warrants listed on Bursa.

On the local front, warrants over Dagang NeXchange (DNEX) such as DNEX-CG and DNEX-CF continued to be actively traded by investors, recording a total trading volume of 49.9mil units and 29.2mil units, respectively. It’s mother share, DNEX extended its weekly losses, losing another 6.4% w-o-w. Other warrants over the Malaysian shares that were active last week include JAKS-CD, MYEG-C1T, and MYEG-C1Y. 


Top warrants by volume traded:

Warrant nameVolume (‘mil.)IssuerExercise level/priceExpiry date
HSI-CIF128.5Macquarie28,00028 Oct 2021
HSI-CIQ84.0Macquarie29,80030 Dec 2021
HSI-CIL66.1Macquarie27,00029 Nov 2021
HSI-HGV60.8Macquarie25,80030 Aug 2021
HSI-CIK60.4Macquarie29,00029 Nov 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. The Warrants will not be offered to any US persons.

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