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HSI warrants take on centre stage last week

The warrants market witnessed an overall lower trading activity last week partly due to the shorter trading week as Bursa Malaysia was shut on Thursday in conjunction with the Malaysia Day holiday. The total warrants turnover for the week came in at RM237.8mil versus RM268.9mil in the previous week
macquarie structured warrants 20200914

The warrants market witnessed an overall lower trading activity last week partly due to the shorter trading week as Bursa Malaysia was shut on Thursday in conjunction with the Malaysia Day holiday. The total warrants turnover for the week came in at RM237.8mil versus RM268.9mil in the previous week, marking an 11.6% drop week-on-week although the average daily turnover jumped 10.6% to RM59.5mil versus RM53.8mil the previous week.

Warrants over the Hang Seng Index (HSI) continued to dominate the weekly turnover, accounting for RM158.9mil which is 66.8% of the overall turnover, owing in part to volatile trading in the underlying. The turbulent week saw the HSI September futures log a four-day losing streak to plumb to its lowest level in 10 months, ending at 24,647 on Thursday before staging a minor rebound to end at 24,883 (+1.0%) on Friday. In total, the week saw the HSI September futures eased by 1,258 points, representing a 4.8% weekly drop.

The holiday shortened week saw active trading mainly on the HSI call warrants which include HSI-CIU, HSI-CIG, HSI-CIQ and HSI-CIL with a combined volume traded of 441.3mil units. HSI-CIU and HSI-CIG occupied the first and second spot in the most active list with 123.3mil and 116.0mil units traded respectively while the put HSI-HG2 came in on third place with 104.1mil units. HSI-HG2 was also the top warrant traded by value, registering up to RM40.1mil in value traded for the week. Meanwhile HSI-CIQ and HSI-CIL saw up to 102.9mil and 99.1mil units exchanged hands. It is good to note that as of the close on Friday, call warrants HSI-CIF, HSI-CIK and HSI-CIQ are fully sold-out while HSI-CIU is currently on low inventory. 

On the local front, call warrant DNEX-CG continued to be in focus with up to 44.1mil units traded as the mother share rallied 6.7% for the week to end Friday at RM0.80. Other popular warrants for the week were AMBANK-C24, JAKS-CD and GREATEC-CJ with total traded volumes of up to 32.7mil, 22.9mil and 21.8mil units respectively.

Top warrants by volume traded:

Warrant nameVolume (‘mil.)IssuerExercise level/priceExpiry date
HSI-CIU123.3Macquarie28,60028 Jan 2022
HSI-CIG116.0Macquarie26,00028 Oct 2021
HSI-HG2104.1Macquarie25,40029 Sep 2021
HSI-CIQ102.9Macquarie29,80030 Dec 2021
HSI-CIL99.1Macquarie27,00029 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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