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Lower warrants turnover for the week, in line with broader market

Total warrants turnover last week saw a 21.3% decline from the previous week to RM681.4mil, in line with the reduced activity in the broader market, in addition to the Hong Kong market having a much shorter trading week pursuant to the market holidays on Thursday and Friday. Market making for warrants over Hong Kong underlyings such as the Hang Seng Index (HSI) and the iShares China A50 ETF will resume on Monday (5 Oct).
macquarie structured warrants 20200914

Total warrants turnover last week saw a 21.3% decline from the previous week to RM681.4mil, in line with the reduced activity in the broader market, in addition to the Hong Kong market having a much shorter trading week pursuant to the market holidays on Thursday and Friday. Market making for warrants over Hong Kong underlyings such as the Hang Seng Index (HSI) and the iShares China A50 ETF will resume on Monday (5 Oct). 

Despite the shorter week, call warrant HSI-C9V secured a spot in the top warrants list with 69.7mil units traded. Do note that this warrant expires on 30 October 2020, with its last trading date on 27 October 2020. Investors may consider warrants with a longer time to expiry, which experience slower time decay than warrants with a shorter time to expiry. 

Meanwhile, warrants over the S&P 500® Index (SP500) saw its turnover lagging behind earlier in the week despite all eyes focussing on the US’ first 2020 presidential debate held on 29 September 2020. At about 1:00pm on Friday, news broke that the US President has tested positive for Covid-19, though it remains to be seen how this will affect the ongoing US elections campaign leading up to the elections on 3 November 2020. The SP500 Index fell 1.0% on Friday to end the week at 3,348.44 points. Investors may gain leveraged exposure to the US market with the call and put warrants over the SP500 that track the relevant futures contract which trades on the Chicago Mercantile Exchange (CME) throughout Bursa’s trading hours. 

On the local front, warrants over Top Glove and Supermax continued to dominate the charts. TOPGLOV-C81 and TOPGLOV-C90 were on the top 5 most active list with 107.1mil and 63.0mil units traded, respectively. Top Glove shares closed at RM8.76 on Friday, 0.5% lower week-on-week (w-o-w). Call warrant SUPERMX-C1I was also popular with investors, seeing 68.6mil units traded last week as Supermax shares finished the week at RM8.98 (+4.5% w-o-w).

Other than that, the call warrant over V.S. Industry, VS-C30, also made it to the top 5 most active list, while warrants over counters such as Hartalega, Kossan and Inari Amertron were also actively traded last week.

Top warrants by volume traded:

Warrant nameVolume
(mil.)
IssuerExercise price / levelExpiry date
TOPGLOV-C81107.1CIMB5.666731 Dec 2020
HSI-C9V69.7Macquarie25,80030 Oct 2020
SUPERMX-C1I68.6Kenanga14.0026 Jul 2021
TOPGLOV-C9063.0Macquarie13.333326 Feb 2021
VS-C3058.7Kenanga1.0622 Mar 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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