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

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

Serba Dinamik Holdings Berhad

The latest win is a testament of Serba Dinamik’s position as one of the major
players in the oil & gas industry. Assuming a burn rate of approximately RM400.0m
in December 2020, Serba Dinamik’s outstanding orderbook will come at RM18.3bn
by end-2020; within our assumption of RM18.5bn.

market pulse

Commendable breakthrough

The FBM KLCI delivered another commendable performance amid optimism that
Malaysia economy is widely touted to emerge from the Covid-19 pandemic slump
following the recent progress of Covid-19 vaccine developments. Still, we reckon
that the strong upsides may also attract quick profit taking activities over the
interim. At the same time, the lower liners are set for the extended rally that is
largely driven by the ample of liquidity as investors continue to seek for higher
yields investments.

market pulse

Market momentum still sturdy

The FBM KLCI edged mildly lower as sentiment turned downbeat as investors booked in gains from the previous session rally. While the local bourse is demonstrating some mild weakness, we reckon that the general recovery trend is still intact as the attention remains focus on the pace of economic recovery. The positive development over the Covid-19 vaccine will also continue to aid the recovery progress. Meanwhile, the lower liners are expected to charge higher, driven by the ample liquidity with the equities market remain in favour.

AME Elite Consortium Bhd – 2nd Dec 20

The proposed AME REIT would also provide stable and recurring income to investors, with at least 90.0% of its income to be distributed as dividends to unitholders. We note that slightly more than half of the current tenants of the industrial properties has more than 5 years of lease under their agreements. Additionally, AME REIT is expected to benefit from lower tax rate compared to prevailing corporate tax rate at an average of 23.4% recorded over the past 4 years.