Follow Us For The Latest Updates

Follow Us For The Latest Updates

Put warrant HSI-H6Q recorded 53.0% gain for the week

Warrants Commentary (5 August to 9 August)

The Malaysian warrants market was heated up last week with a total RM594.8mil. traded, the highest weekly turnover since May 2019. The increased trading activity can be attributed to rising volatility in the global equity markets which includes the Hang Seng Index (HSI). Warrants over the HSI continued to dominate the warrants space with RM463.9mil. in weekly turnover, making up a staggering 78.0% of the total warrants market.

The trade tensions between U.S. and China continued to occupy the headlines last week. Last Tuesday (6 Aug), China announced that it has suspended the purchase of U.S. agricultural products in retaliation to the new 10% levies by US President Donald Trump on 1 August 2019 (6 Aug, South China Morning Post). The HSI futures plunged 2.9% on Monday and opened lower on Tuesday. However, we saw a strong rebound in the HSI futures on Tuesday, causing it to close only 0.2% lower for the day. Due to the ongoing protests in Hong Kong, the HSI futures were lagging behind other global equity markets. Instead of closing higher, the HSI futures were trading in the range of 25,595.0 to 26,246.0 points from Wednesday to Friday and finished the week at 25,883.0 points, down 3.5% week-on-week (w-o-w).

Put warrants over the HSI were top traded last week, with HSI-H6Q emerging as the most active warrant with RM97.9mil. traded. As the HSI futures traded lower, HSI-H6Q moved in the opposite direction and gained a whopping 53.0% w-o-w. Besides that, investors also traded a total RM96.6mil. worth of HSI-H6T as the put warrant closed 36.4% higher w-o-w. With all other factors kept constant, put warrants with a lower exercise level tend to have a higher gearing level (meaning a higher level of risk), which is why HSI-H6Q tend to move in larger percentages than HSI-H6T.

Among the warrants over Malaysian shares, call warrant GENM-C52 topped the chart with RM8.0mil traded. The share price of Genting Malaysia (GENM) had been climbing steadily in 2019, recording a 29.3% increase year to date as at 2 August 2019. However, the trend reversed last week after GENM acquired a stake in loss-making Empire Resorts from GENM’s chairman Tan Sri Lim Kok Thay for USD128.6mil. in cash (6 Aug, The Edge Markets).

Top HSI warrants by value traded:

Warrant nameValue
IssuerExercise levelExpiry date
HSI-H6Q97.9Macquarie26,20027 Sep 2019
HSI-H6T96.6Macquarie27,00030 Oct 2019
HSI-H6S45.2Macquarie25,20030 Oct 2019
HSI-H6P41.3Macquarie24,80027 Sep 2019
HSI-H6R35.0Macquarie27,60027 Sep 2019

If you have any questions or need further assistance, please do not hesitate to contact us via email us at [email protected]

To view the full list of structured warrants available on Bursa Malaysia, kindly visit

Provided for Malaysian residents information only. 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.


Share on facebook
Share on twitter
Share on linkedin
Share on telegram

More Posts

market pulse

Bank Negara’s OPR in focus

Bargain hunting activities emerged on the glove counters after more than one week of pullback, lifting the FBM KLCI and the healthcare sector higher. Market will be looking forward to the second Monetary Policy Committee meeting today to gauge market movements. However, economists anticipate an unchanged stance on the Overnight Policy Rate (OPR) amid expectation of an economic recovery. We believe the lower liners will continue to remain upbeat if the positive market sentiment persists. Meanwhile, the Brent oil price has seen a rebound.

market pulse

Streched valuations

Bucking the downturn across the regional markets, the FBM KLCI ended modestly higher as continued selling in glove heavyweights were offset by buying support in IHH and selected banking heavyweights. We believe the local bourse should trade in an upward bias tone following the change of MCO status for Selangor, Johor, Penang and KL. Meanwhile, the number of Covid-19 confirmed cases daily has dropped to year-to-date low. However, note that the negative sentiment on Wall Street overnight could cap the upside potential on the local front.

technical focus

Technical Focus – LHI

One of the largest fully integrated producers of poultry, eggs and livestock feed in Southeast Asia with strong presence in Malaysia, Indonesia, Vietnam and Singapore. Committed to expand the Malaysia, Philippines and Vietnam operations via additional capacities and infrastructures, whilst targets 160 Baker’s Cottage outlets by end-FY21 (from 103 outlets since end-FY20). Sequential earnings recovery is on the table, premised to the stabilising poultry prices in Malaysia as well as Indonesia in recent months. Technically, the flag-formation breakout above RM0.71 may lead price towards the immediate resistances at RM0.775-0.82, with long term target at RM0.885.

market pulse

Rebound in sight

The FBM KLCI ended the first trading session of March in red amid continued selling pressure in glove heavyweights following further developments on Covid-19 vaccine. Although the arrival of the Covid-19 vaccine has dented the sentiment on healthcare sector, the local bourse was supported by the positive sentiment on the recovery-theme sectors. Meanwhile, we also expect 5G and tech stocks to trade firmer following overnight Nasdaq performance.