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Mah Sing and AirAsia warrants joined the bandwagon

The Malaysia warrants market recorded a RM809.8mil turnover last week, which is 1.7% higher than the prior week due to renewed interest in stocks which were badly beaten down due to the Covid-19 pandemic. Nonetheless, warrants over rubber glove stocks continued to dominate the warrants space with RM455.4mil traded, which made up more than 56.2% of the total warrants market.
macquarie structured warrants 20200914

The Malaysia warrants market recorded a RM809.8mil turnover last week, which is 1.7% higher than the prior week due to renewed interest in stocks which were badly beaten down due to the Covid-19 pandemic. Nonetheless, warrants over rubber glove stocks continued to dominate the warrants space with RM455.4mil traded, which made up more than 56.2% of the total warrants market. 

Supermax, Mah Sing and Top Glove were among the most popular rubber glove underlyings last week. The shares of rubber glove players experienced heavy selling pressure throughout last week before staging small rebounds on Friday following RHB Investment Bank’s statement that the Covid-19 vaccine deployment could be a new demand source for rubber gloves at up to 18bil pieces a year assuming that 60% of the world’s population of 7.5bil will get the vaccine in two doses annually (The Edge Markets, 19 Nov).

Call warrant SUPERMX-C1I was crowned the top traded warrant last week with 220.1mil units traded, followed by MAHSING-C30 and TOPGLOV-C84 which ranked third and fifth on the list with 91.8mil and 63.9mil units traded, respectively. Last week, investors took home a total of 11.5mil units of MAHSING-C30 which resulted in this call warrant being close to sold out. Investors should practise caution when trading sold out warrants as the warrant’s market bid price may be inflated by other investors queuing in the market.

Following the positive vaccine developments by Pfizer and BioNTech on 9 November, another American biotech company Moderna Inc said on Monday that its experimental Covid-19 vaccine was 94.5% effective in preventing the disease. Budget airline operator AirAsia Group finished in the green for the second consecutive week as its share price recorded an 8.3% week-on-week (w-o-w) gain on hopes of the upliftment of travel bans. Call warrant AIRASIA-C1J secured the fourth spot on the top traded warrant list with 80.4mil units traded as the warrant price jumped 25.0% w-o-w.

Meanwhile, put warrant HSI-HDI came in second on the top traded list. Out of the total 120.7mil units traded, bearish investors accumulated more than 5.0mil units as the warrant’s bid price fell 35.0% w-o-w, moving in an opposite direction to the 1.1% weekly gains in the Hang Seng Index futures. 

Top warrants by volume traded:

Warrant nameVolume
(mil.)
IssuerExercise level/priceExpiry date
SUPERMX-C1I220.1Kenanga14.0026 Jul 2021
HSI-HDI120.7Macquarie23,40030 Dec 2020
MAHSING-C3091.8Macquarie1.5821 May 2021
AIRASIA-C1J80.4Kenanga0.8026 Apr 2021
TOPGLOV-C8463.9CIMB6.0026 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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