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Rubber glove and HSI warrants among most active

The total warrants turnover fell 13.7% to below RM1.0bil at RM863.8mil for the week ended 25 September 2020. Warrants over the Malaysian counters continued to be the biggest contributor to the warrants market, representing almost 90% of turnover, followed by warrants over the Hang Seng Index (HSI) which contributed 7.9% to the overall warrants’ market share.
macquarie structured warrants 20200914

The total warrants turnover fell 13.7% to below RM1.0bil at RM863.8mil for the week ended 25 September 2020. Warrants over the Malaysian counters continued to be the biggest contributor to the warrants market, representing almost 90% of turnover, followed by warrants over the Hang Seng Index (HSI) which contributed 7.9% to the overall warrants’ market share. 

Despite the recent political turmoil and news of ongoing vaccine trials, the share price of Malaysian rubber glove makers rebounded amid resurging Covid-19 cases in Europe, which has renewed investors’ interests in these counters. Top Glove saw a gain of 10.3% week-on-week (w-o-w), Hartalega and Supermax rose 20.1% and 22.7% w-o-w, respectively while Kossan Rubber surged 14.2% w-o-w. 

Two call warrants over Supermax i.e. SUPERMX-C1I and SUPERMX-C1E secured their positions in the top five most traded warrants. SUPERMX-C1I recorded the highest trading volume of 226.6 mil units while SUPERMX-C1E had investors trading a total 87.2 mil units throughout the week. Meanwhile, two call warrants over Top Glove namely TOPGLOV-C81 and TOPGLOV-C84 continued to be actively traded with both warrants recording a total trading volume of 164.3 mil units and 121.0 mil units, respectively. 

On the foreign front, it was a bumpy ride last week as the Hong Kong’s Hang Seng Index (HSI) posted the biggest weekly decline since March this year, plunging 5.0% w-o-w as concerns persisted that a global recovery will falter amid the lack of a fresh stimulus package in the US and a spike in coronavirus cases in Europe (South China Morning Post, 25 Sep).  Call warrant HSI-C9V which will expire on 30 October 2020 remained investors’ favorite with investors net buying 25.3 mil units out of the 139.1 mil units traded. This call warrant, which tracks the underlying index, fell 73.0% as its bid price closed at RM0.050 on Friday (25 Sept). HSI-C9V is a shorter dated warrant with only a month of left to expiry. Investors should take note that warrants with shorter time to expiry will experience steeper time decay, which is an additional holding cost for investors. 

Top warrants by volume traded:

Warrant nameVolume
(mil.)
IssuerExercise level / priceExpiry date
SUPERMX-C1I226.6Kenanga14.0026 Jul 2021
TOPGLOV-C81164.3CIMB5.6731 Dec 2020
HSI-C9V139.1Macquarie25,80030 Oct 2020
TOPGLOV-C84121.0CIMB6.0029 Jan 2021
SUPERMX-C1E87.2Ambank14.0030 Apr 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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