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Supermax and Top Glove call warrants stole the limelight

The Malaysia warrants turnover jumped 56.8% to RM1.04bil. from RM662.82mil a week ago due the drastic increase in trading activities in warrants over Supermax Corporation, Top Glove Corporation and Hang Seng Index (HSI). The trading in warrants over Malaysia stocks was the biggest contributor last week with RM980.43mil. traded followed by the HSI warrants which saw RM75.81mil. traded.
macquarie structured warrants 20200914

The Malaysia warrants turnover jumped 56.8% to RM1.04bil. from RM662.82mil a week ago due the drastic increase in trading activities in warrants over Supermax Corporation, Top Glove Corporation and Hang Seng Index (HSI). The trading in warrants over Malaysia stocks was the biggest contributor last week with RM980.43mil. traded followed by the HSI warrants which saw RM75.81mil. traded.

The share prices of Malaysian glove makers drifted lower since last Monday with Top Glove and Supermax shares falling 23.0% and 36.5% respectively in the first four trading days last week. It was reported that Top Glove spent RM110mil to buy back its shares in the open market last week ahead of its highly anticipated fourth quarter results which will be released on 17 September 2020 (The Edge Markets, 11 Sep). However, the glove makers had a turnaround on Friday when the share price rebounded from the weekly low prices to close on a higher note, with Top Glove shares gaining 20.3% and Supermax shares rising 23.0% on Friday. 

Call warrant SUPERMX-C1I which saw 518mil. units traded took the crown for the most actively traded warrant last week. Another call warrant SUPERMX-C1E with the same exercise price of RM14.00 also made it to the top 5 warrant list with 112.7mil units traded. Both call warrants finished 33.3% and 40.0% lower week-on-week (w-o-w). The top traded Top Glove call warrant last week was TOPGLOV-C81, which is currently an in-the-money warrant.

On the other hand, the HSI September futures saw huge selling pressure last week following the meltdown in US technology shares.  The call warrants HSI-C9U and HSI-C9V were actively traded and placed third and fifth on the top traded list last week. We saw bullish investors taking home more than 4.0mil. units in HSI-C9V last week as the Hong Kong benchmark futures finished 0.9% lower for the week. The performance of the HSI call warrants tracked the HSI futures closely to close 30.8% and 22.4% lower w-o-w. 

Top warrants by volume traded:

Warrant nameVolume
(mil.)
IssuerExercise price / levelExpiry date
SUPERMX-C1I518.0Kenanga14.0026 Jul 2021
TOPGLOV-C81144.7CIMB5.7031 Dec 2020
HSI-C9U123.5Macquarie27,00030 Oct 2020
SUPERMX-C1E112.7Ambank14.0030 Apr 2021
HSI-C9V111.8Macquarie25,80030 Oct 2020

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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