Follow Us For The Latest Updates

Follow Us For The Latest Updates

TM and MYEG draw attention as investors await G20 outcome

Warrants Commentary (24 June to 28 June)

Trading in structured warrants over Malaysian shares grew a fair share this week; top names include Telekom Malaysia (TM) and My EG Services (MYEG). Warrants over shares comprised 22.8% of turnover (RM101.5mil) last week, compared to 15.4% (RM89.2mil) in the previous week. However, trading in warrants over the Hang Seng Index (HSI) and iShares China A50 Index ETF slowed last week, though they still comprised 72.7% and 4.0% of turnover, respectively. 

The top warrant over shares last week was once again the call warrant over TM, TM-C41, with 39.6mil units traded. TM was in the spotlight in June as its share price soared following the release of its better-than-expected results for the first quarter ended 31 March 2019. TM shares are up 10.8% month-to-date (MTD), while TM-C41’s warrant price is up 42.9% MTD. Meanwhile, TM-C47, a warrant that was listed last Tuesday, saw 16.5mil units traded. This warrant has an exercise price of RM4.00, the highest among all TM warrants listed on Bursa Malaysia.

Meanwhile, MYEG shares have been rocky this past week. The shares fell 3.4% on Monday but clawed its way back to end the week 1.4% higher week-on-week. Call warrant MYEG-C68 saw 37.8mil units traded, while MYEG-C65 was the second most popular MYEG warrant with 21.8mil units traded. Between the two, MYEG-C68 has a higher effective gearing level of 3.5 times compared to MYEG-C65’s 3.3 times, as MYEG-C68 has a higher exercise price of RM1.85 compared to MYEG-C65’s RM1.50. 

As for warrants over foreign indices, investors stood on the sidelines as they await the G20 summit. At the time of writing, the trade talk between Trump and Xi was done early Saturday, with the US saying the outcome was “better than expected”, and China saying that the US has agreed not to impose any further tariffs on Chinese goods. 

Two call warrants over the HSI, HSI-C5J and HSI-C5P, were at the top of the list with 278.7mil and 234.9mil units traded respectively, despite the HSI rising only 0.2% over the week to close at 28,542.6 points. Investors should note that HSI-C5J expires at the end of July, and exercise caution as a warrant’s time value will decay at the quickest rate in the last one-third of its life.

Top stock warrants by volume traded:

Warrant nameVolume
IssuerExercise priceExpiry date
TM-C4139.6Macquarie3.5030 Sep 2019
MYEG-C6837.8Macquarie1.8531 Oct 2019
EKOVEST-CX28.9Maybank0.88030 Apr 2020
TM-C4024.0RHB3.1023 Oct 2019
TM-C4623.0RHB3.8023 Jan 2020

If you have any questions or need further assistance, please do not hesitate to email us at [email protected]

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

AME Elite Consortium Bhd – 26th Feb 21

As of 3QFY21, AME is equipped with an unbilled construction orderbook of approximately RM200.0m, representing unbilled orderbook-to-cover ratio at 1.1x against FY20 construction revenue of RM185.2m that will provide earnings visibility over the next two years. While there were 22 Covid-19 cases reported at the worker’s dormitory, AME has conducted immediate sanitisation and set up a separate off-site quarantine centre.

OCK Group Bhd – 26th Feb 21

As of FY20, OCK owns and manages over 4200 telco sites in Malaysia (500 sites), Myanmar (1,000 sites) and Vietnam (2,700 sites) that will provide stream of recurring income over the long term. We note OCK will actively participate on the National Digital Network Initiative (Jendela) plan with RM4.0bn infrastructure works for more than 1,700 sites to be tendered by 1Q2021, whilst capitalising on the 5G transition that may see demand for telecommunication sites quadruple against the number of 4G sites.

market pulse

Return of volatility

The FBM KLCI has rebounded strongly amid bargain hunting activities as steel-related and technology stocks were traded higher following several strong sets of results under the respective sectors. Meanwhile, healthcare sector was the sole decliner in the broader market. We believe the market will be pricing in Covid-19 vaccination progress and market may trend on an upward bias tone, focusing on recovery theme stocks. On the commodity side, the crude palm oil price has climbed above RM3,700, while Brent oil price is firmly trading above USD65.

SLP Resources Bhd – 25th Feb 21

Moving in FY21f, we believe that sales from the local market will continue to take charge (>50%), after raking 53.3% of total revenue in FY20 as oppose to only 39.0% recorded in FY19. For now, SLP will focus on ramping up the production of kitchen and garbage bag, targeting 25% of production output in FY21f (from less than 20% recorded in FY20).