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Lower overall warrants turnover for the week; HSI warrants back in focus

The overall warrants market turnover came in at RM593.0mil last week, dropping by approximately 26.8% versus the previous week as stocks over glove makers took a breather. Warrants over Malaysian shares still dominated the total turnover, making up approximately 85.2% of the total warrants turnover at RM505.5mil, followed by warrants over indices with RM41.8mil (7.0%) and warrants over foreign underlyings which made up the balance.
macquarie structured warrants 20200914

The overall warrants market turnover came in at RM593.0mil last week, dropping by approximately 26.8% versus the previous week as stocks over glove makers took a breather. Warrants over Malaysian shares still dominated the total turnover, making up approximately 85.2% of the total warrants turnover at RM505.5mil, followed by warrants over indices with RM41.8mil (7.0%) and warrants over foreign underlyings which made up the balance.

Glove makers which were previously actively traded have mostly saw subdued trading volume with news breaking out on Tuesday that the Malaysian government has ordered staggered closures for Top Glove’s factories amid an escalating Covid-19 outbreak among its workforce. Its share price extended losses for a sixth straight week to close at RM6.99 on Friday, down 4.1% for the week despite news that its dividend yield is estimated to be more than 6% for FY21.  Meanwhile, SUPERMX was 5.5% higher for the week at RM8.52, snapping a two-week losing streak. Call warrant SUPERMX-C1I topped the list as the most actively traded warrant last week with up to 245.4mil units traded. It is also the top traded warrant by value with RM27.0mil in turnover. TOPGLOV-C84 also made the fifth spot with 45.3mil units traded despite the news.

On the foreign front, warrants over the Hang Seng Index (HSI) were back in focus as the underlying HSI futures saw another buoyant week after surging for a sixth consecutive day Friday to finish at 26,921.0 (+1.8%), extending its weekly win streak to four weeks in a row and closing at its highest level since February 2020. The gains saw fresh interests particularly in the HSI put warrants with HSI-HDI and HSI-HDJ making the number two and three spots in the top active list with up to 121.8mil and 49.5mil units traded, respectively. Also on the foreign front, call warrant XIAOMI-C4 made it to the fourth spot last week with a total 47.2mil units traded following a volatile week for the stock as it ended 2.0% higher for the week at HKD26.05 after dropping from a weekly high of HKD28.40.

Top warrants by volume traded:

Warrant nameVolume
(mil.)
IssuerExercise level/priceExpiry date
SUPERMX-C1I245.4Kenanga14.0026 Jul 2021
HSI-HDI121.8Macquarie23,40030 Dec 2020
HSI-HDJ49.5Macquarie25,40030 Dec 2020
XIAOMI-C447.2RHB26.5029 Mar 2021
TOPGLOV-C8445.3CIMB6.0029 Jan 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.

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macquarie structured warrants 20200914

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