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HSI warrants most active as futures rally

The HSI futures had a sluggish start to the week, down 2.2% to trade slightly below the 24,000 level at 23,974 as the Hong Kong market reopened on Monday (4 October) after being shut on Friday (1 October) in conjunction with the National Day
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Overall warrants turnover for the week ended 8 October recorded higher than the previous week, rising 21.5% to RM319.2mil, which was largely contributed by the active trading in warrants over the Hong Kong’s Hang Seng Index (HSI), representing 60.5% of the total warrants’ turnover.   

The HSI futures had a sluggish start to the week, down 2.2% to trade slightly below the 24,000 level at 23,974 as the Hong Kong market reopened on Monday (4 October) after being shut on Friday (1 October) in conjunction with the National Day. The bearish momentum was in-line with other Asian benchmark indices due to investors concern about China’s property sector and inflation (Reuters, 4 October). The market rebounded slightly the following day, inching up 0.4% or 84 points before losing 101 points again on Wednesday (6 October). However, the futures then staged another rebound, rallying to close 2.8% higher on Thursday as Chinese technology giants Tencent and Alibaba rose 5.6% and 7.3%, respectively. On Friday, the futures extended gains to finish the week at 24,824 points, up 0.8%. 

HSI-CIV with an expiry date of 28 January 2022 emerged as the most active warrant with investors net buying over 28mil units out of 245.3mil units traded last week. The call warrant rose 4.3% week-on-week (w-o-w), moving in tandem with the movement in the underlying futures. Meanwhile, the put warrant HSI-HG8 came in second, recording a total trading volume of 188.1mil units while its turnover recorded at RM44.2mil. This warrant plunged 30.4% w-o-w; do note that this warrant is a short-dated warrant with its last trading date coming up on 26 October 2021. It is important for investors to check a warrant’s expiry date, and investors are encouraged to buy or trade warrants with time to expiry that is longer than their expected holding period, as longer dated warrants experience a slower rate of time decay than shorter dated warrants.

Elsewhere, GENM-C89 was the top traded warrant over the Malaysian shares with a total of 80.4mil units traded last week. MAYBANK-C75 and DIALOG-C69 were also among the most active warrants, recording trading volumes of 34.7mil units and 33.8mil, respectively.

Top warrants by turnover: 

Warrant nameTurnover
(RM ‘mil.)
IssuerExercise level/priceExpiry date
HSI-CIV88.3Macquarie26,60028 Jan 2022
HSI-HG844.2Macquarie24,40028 Oct 2021
HSI-CIG14.4Macquarie26,00028 Oct 2021
HSI-HG78.7Macquarie22,40028 Oct 2021
HSI-CIL6.2Macquarie27,00029 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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macquarie structured warrants 20200914

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