The total warrants turnover for the first week of September came in at RM178.3mil which was 26.7% lower versus the previous week due to the public holiday last Tuesday in conjunction with Malaysia’s National Day. Despite its strong performance in the previous week, the local benchmark FBM KLCI was rather subdued for the week ended 3 September 2021 as it pulled back from its closing high of 1,601.38 on 30 Aug to end the week slightly lower at 1,589.19 (-0.1%) as investors continued to focus on the broader market with index warrants taking up 59.4% of the week’s turnover with warrants over the Hang Seng Index (HSI) making up the majority.
The HSI futures clocked in its second weekly gain last week, ending at 25,845 (+1.9%) with four green days out of 5. Despite a choppy start to the week which saw prices swinging between gains and losses on Monday and Tuesday, the index still managed to regain its footing to close higher over the first four days of the trading week, only to lose some momentum on Friday. The overall bullish week saw bargain hunting activities in the put warrants HSI-HG1 and HSI-HG2 as they recorded up to 153.6mil and 58.5mil units being traded respectively with a total combined turnover of RM30.3mil. It is worth noting that both put warrants are expiring on 29 September 2021 and have around three weeks of trading time left. Warrants approaching expiry will experience a higher rate of time decay as compared to longer dated warrants, all other factors held constant.
Besides that, the holiday shortened week also saw active trading in the call warrants HSI-CIF and HSI-CIQ as they logged up to 80.0mil and 54.5mil units traded, taking up the second and fourth spot in the most active list. Another actively traded HSI warrant was HSI-CIL which registered 48.6mil units traded and was the top warrant traded by value with a total turnover of RM19.9mil.
On the local front, the call warrant over Dagang NeXchange (DNEX), DNEX-CG came in fifth with 50.6mil units traded amid a volatile week as the underlying fell over the week towards a weekly low of RM0.71, only to gain ground on Friday to end the week up by 1.3% at RM0.755. Other actively traded warrants over Malaysian stocks were CTOS-CE and JAKS-CD with a total traded volume of 27.0mil and 23.8mil units traded respectively.
Top warrants by volume traded:
|Warrant name||Volume (‘mil.)||Issuer||Exercise level/price||Expiry date|
|HSI-HG1||153.6||Macquarie||23,400||29 Sep 2021|
|HSI-CIF||80.0||Macquarie||28,000||28 Oct 2021|
|HSI-HG2||58.5||Macquarie||25,400||29 Sep 2021|
|HSI-CIQ||54.5||Macquarie||29,800||30 Dec 2021|
|DNEX-CG||50.6||Kenanga||1.20||30 May 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.