The Malaysia warrants market was rather quiet last week with the overall warrants turnover coming in at RM151.5mil, post Hari Raya celebrations. Investors continued to remain in cautious mode amid reports of record high Covid-19 cases in the country and concerns of potential stricter economic and social restrictions. The benchmark FBMKLCI ended its fourth consecutive week in red territory, down by 1.3% to 1,562.17.
For the week, warrants over single stocks was the major contributor with RM103.2mil traded, representing 68.1% of the total warrants turnover while warrants over the Hang Seng Index (HSI) contributed 27.3% with its total turnover recording RM41.3mil in value traded. Call warrants D&O-CC and SUPERMX-C1Z were among the top single stock warrants on the list and recorded RM5.9mil and RM5.6mil turnover each last week. As Covid-19 cases in the country hit record highs, there were renewed interest in the rubber glove makers as industry giants Top Glove and Supermax jumped by 2.1% and 8.2% respectively last Wednesday. As a result, call warrant TOPGLOV-C1L also saw a pickup in trading interest, registering RM4.1mil in value traded for the week.
Meanwhile on the foreign front, warrants over the Hang Seng Index (HSI) dominated the index warrants space despite the holiday shortened week in conjunction with the Birthday of the Buddha holiday in Hong Kong on Wednesday. Put warrant HSI-HGM was the most popular warrant with RM7.3mil turnover followed by call warrant HSI-CFP which saw RM6.1mil traded last week. The underlying HSI May futures contract snapped a three-week losing streak and recorded three green days out of four to end the week in the positive territory at 28,336, up 1.5% week-on-week (w-o-w). Bearish investors took home more than 5.4M units of HSI-HGM as the bid price of the put warrant finished 47.6% lower w-o-w. HSI-HGN was another put warrant which is popular among the investors, logging in RM5.6mil turnover to secure the last spot on the top traded warrant list last week
Top warrants by value traded:
|Warrant name||Value (RM’mil.)||Issuer||Exercise level/price||Expiry date|
|HSI-HGM||7.3||Macquarie||26,000||29 Jun 2021|
|HSI-CFP||6.1||Macquarie||31,600||29 Jul 2021|
|D&O-CC||5.9||Kenanga||2.88||8 Nov 2021|
|SUPERMX-C1Z||5.6||CIMB||5.50||30 Sep 2021|
|HSI-HGN||5.6||Macquarie||28,000||29 Jun 2021|
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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.