Follow Us For The Latest Updates

Follow Us For The Latest Updates

Volatile week for the global markets

Warrants Commentary (6 to 10 January)

Happy New Year! The Malaysian warrants market started to warm up after the holiday season, with turnover for last week coming in at RM226.8mil. Turnover for warrants over the Hang Seng Index (HSI) remained a healthy 65.1% of turnover following the volatile week for the Hong Kong market. Meanwhile, warrants over stocks comprised 29.1% of the market, while warrants over the iShares China A50 Index ETF (China A50 ETF) made up 5.5% of the market.

Last week, the global markets were rocked by various news around the world. The HSI futures had a volatile week, starting the week with a 0.9% decline to 28,183 points on Monday due to news over the weekend that the US has killed one of Iran’s top military commanders. The futures rebounded 0.7% on Tuesday but then declined an additional 1.4% on Wednesday to 28,058 points on escalating tensions between the US and Iran. Bearish investors bought the HSI put warrants, namely 17.9mil units of last week’s top traded warrant HSI-H8K, while taking profit in the HSI calls warrants.

On Thursday and Friday, the futures enjoyed a bullish run as the US-Iran tensions eased, coupled with optimism of a trade deal between US and China. The futures closed 2.2% higher over these two days to finish the week at 28,666 points, erasing the previous losses and closing 0.8% higher week-on-week (w-o-w). On Thursday, investors bought an additional 9.2mil units of HSI-H8K, causing this warrant to be sold out. Investors should exercise caution when trading sold out warrants, as the market price of these warrants may be inflated by other investors bidding in the market. Investors should check the live matrix to see the fair price of a warrant before trading.

Over the week, investors traded 278.1mil units of put warrant HSI-H8K, and 175.7mil and 105.1mil units of call warrants HSI-C7J and HSI-C7K, respectively.

On the local front, the top stock warrant by volume traded was the call warrant over FGV Holdings (FGV), FGV-C86, which saw 38.2mil units traded last week. The share price of FGV fell for the first three days of last week, then rose over the last two days to end the week at RM1.53, 1.9% lower w-o-w. Investors net bought 8.9mil units of FGV-C86 over last week.

Top warrants by volume traded:

Warrant name Volume
Issuer Exercise level/price Expiry date
HSI-H8K 278.1 Macquarie 27,000 27 Feb 2020
HSI-C7J 175.7 Macquarie 30,000 27 Feb 2020
HSI-C7K 105.1 Macquarie 28,000 27 Feb 2020
FGV-C86 38.2 Macquarie 1.65 19 Jun 2020
A50CHIN-C50 37.9 Macquarie 15.50 31 Mar 2020

If you have any questions or need further assistance, please do not hesitate to contact us at

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

OCK Group Bhd – 26th Nov 20

We attended the post quarter results analyst briefing and came away feeling re-assured on OCK Group Bhd (OCK) expansion moving into FY21f. 9MFY20 was largely affected by the slowdown of sites deployment due to the Covid-19 pandemic. Moving into the final quarter of FY20, we understand that the 4Q results are traditionally stronger over the years may see an exception in FY20 due to the current implementation of Conditional Movement Control Order (CMCO) that is impacting the engineering services segment via restriction of interstate travel.

Chin Well Holdings Bhd – 26th Nov 20

Although there were signs of recovery taking shape after emerging from a net loss position in 4QFY20, we reckon that the pace of recovery is expected to remain tepid as companies scaled down their operations. With several countries in Europe returning to lockdown mode, the outlook appears to be relatively challenging.

AME Elite Consortium Bhd – 26th Nov 20

Moving forward, we believe that AME will be able to capitalise on the initiative delivered under Budget 2021 which entails RM100.0m for the maintenance of infrastructure of industrial parks and RM42.0m under JENDELA to improve internet connectivity in 25 industrial parks. Manufacturers of pharmaceutical products will enjoy 0-10% tax rate for 10 years for investment in Malaysia which may attract foreign investors to re-locate or expand their facilities also bodes well for AME.

OCK Group Bhd – 26th Nov 20

As of 3QFY20, 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. Moving forward, OCK remain committed to drive their overseas expansion via brownfield acquisitions in Vietnam and greenfield acquisitions in Myanmar. At the same time, the group remains committed to increase their tower tenancy ratios in Myanmar and Vietnam which could further strengthen their bottomline margins.