Overall warrants turnover continued to decline last week, falling another 25.5% week-on-week (w-o-w) to RM177.4mil due to a shorter trading week, in conjunction with the Nuzul Al-Quran holiday on Thursday (29 April). Warrants over stocks remained the biggest contributor, representing 70.2% of the total turnover at RM124.5mil (+12.0% w-o-w) while warrants over the Hang Seng Index (HSI) contributed 28.8% with its total turnover recording at RM51.1mil (-45.0% w-o-w).
The FBM KLCI started last week on an upbeat note, rising 0.9% to its month-high of 1,623.47 points on Monday (26 April). On Monday, among the big four rubber glove makers, Kossan saw the biggest intraday rally, gaining 6.9% followed by Supermax, rising 5.6%. Throughout the week, both counters added 2.1% w-o-w and 1.3% w-o-w, respectively while Top Glove and Hartalega fell 1.4% w-o-w and 4.6% w-o-w, respectively.
Mah Sing’s first glove manufacturing factory in Kapar, Klang has recently successfully completed the testing and commissioning of its two production lines that will begin this month. It will have a total of 12 production lines, with the rest of the production lines to commence operation in the second and third quarters. The company projects a maximum production capacity of up to 3.68bil pieces of gloves annually (The Edge Markets, 26 April). Last Monday, Mah Sing’s share price joined the gloves rally, jumping to its year high of RM1.08 (+6.9%) before closing slightly lower at RM1.03 on Friday, up 2.0% w-o-w.
Three warrants over the glove makers made it to the top 5 most active warrants; SUPERMX-C1I recorded the highest trading volume of 107.6mil units, followed by MAHSING-C32 which came in second as investors net sold 12.9mil out of the 88.4mil units traded. Meanwhile, HARTA-C59 had investors trading more than 68.4mil units.
On the foreign front, the HSI fell 1.2% w-o-w based on last Friday’s closing level of 28,724.9 points (-2.0%). HSI-CFK and HSI-HGK remained popular with investors trading more than 80mil units each. Do take note that HSI-CFK was sold out as investors bought more than 24mil units last week. Exercise caution when trading sold out warrants as the warrant price may be inflated by other investors queueing in the market. Always refer to the live matrix to see a warrant’s fair bid price.
Top warrants by volume traded:
|Warrant name||Volume (’mil.)||Issuer||Exercise level/price||Expiry date|
|SUPERMX-C1I||107.6||Kenanga||14.0||26 Jul 2021|
|MAHSING-C32||88.4||Macquarie||0.80||11 Jun 2021|
|HSI-CFK||80.7||Macquarie||31,000||29 Jun 2021|
|HSI-HGK||75.7||Macquarie||27,000||28 May 2021|
|HARTA-C59||68.4||Kenanga||23.0||26 Jul 2021|
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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.