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MYEG call warrants posted moderate gains

The HSI October futures had a choppy start last week with a 1.8% gain on Monday followed by a 1.4% loss on Tuesday. However, the futures saw strong buying interest after the Hong Kong market resumed trading on Friday, finishing the week on a positive note at 25,318 points, up 2.0% w-o-w.
macquarie structured warrants 20200914

The Malaysia warrants market saw subtle trading activities last week with the turnover falling by 32.8% week-on-week (w-o-w) to RM214.5mil. Warrants over the Hang Seng Index (HSI) saw the most drastic plunge last week with only RM112.0mil traded as the Hong Kong market was shut on Wednesday and Thursday due to Typhoon Signal No. 8 and Chung Yeung Festival.

The HSI October futures had a choppy start last week with a 1.8% gain on Monday followed by a 1.4% loss on Tuesday. However, the futures saw strong buying interest after the Hong Kong market resumed trading on Friday, finishing the week on a positive note at 25,318 points, up 2.0% w-o-w. 3 HSI call warrants were among the top 5 warrants which recorded the highest turnover with HSI-CIV being the most popular with more than RM46.9mil traded as the bid price of the call warrant soared 15.1% w-o-w. 

Besides, investors also heavily traded the shorter dated HSI-CIG and HSI-CIL which will expire on 28 October 2021 and 29 November 2021. Investors are encouraged to trade longer dated warrants instead of shorter dated warrants as longer dated warrants generally experience lower time decay as compared to warrants with shorter time to expiry. Therefore, investors should be mindful of the expiry date when selecting warrants based on their own trading timeframe. On the other hand, investors who were bearish on the HSI futures took home 4.7mil units of put warrant HSI-HG8 out of the total 166.7mil units traded last week.

On the local front, warrants over My E.G Services (MYEG), Bumi Armada (ARMADA) and Genting emerged on investors’ radar. The share price of MYEG traded above the RM1.05-mark last week for the first time since March 2021 while it rose 12.2% w-o-w. The top 3 most active MYEG warrants were MYEG-C1U, MYEG-C2D and MYEG-C1P which posted weekly gains of 36.8%, 29.0% and 71.4%, respectively. Elsewhere, investors also traded more than RM4.4mil in call warrant ARMADA-C64 last week as ARMADA shares closed at the highest level this year at RM0.535 last Friday.

Top warrants by turnover:

Warrant nameTurnover
(RM ‘mil.)
IssuerExercise level/priceExpiry date
HSI-CIV46.9Macquarie26,60028 Jan 2022
HSI-HG819.2Macquarie24,40028 Oct 2021
HSI-CIG13.4Macquarie26,00028 Oct 2021
HSI-CIL11.9Macquarie27,00029 Nov 2021
MYEG-C1U4.5Kenanga1.0528 Mar 2022

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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