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Warrants over glovemakers remain in focus

The Malaysian warrants market saw a dip in trading last week with the total warrants turnover coming in at RM932.2mil, down by approximately 10.4% from RM1.04bil a week ago due to a shorter trading week in conjunction with the Malaysia Day holiday on 16 September. Warrants over Malaysian shares were still the major contributor to the total warrants turnover making up approximately 93.3% with a total value traded of RM869.6mil, followed by warrants over the Hang Seng Index (HSI) which recorded a total value traded of RM56.8mil, approximately 6.1% of the total warrants turnover.
macquarie structured warrants 20200914

Warrants Commentary (14 Sep to 18 Sep)

The Malaysian warrants market saw a dip in trading last week with the total warrants turnover coming in at RM932.2mil, down by approximately 10.4% from RM1.04bil a week ago due to a shorter trading week in conjunction with the Malaysia Day holiday on 16 September. Warrants over Malaysian shares were still the major contributor to the total warrants turnover making up approximately 93.3% with a total value traded of RM869.6mil, followed by warrants over the Hang Seng Index (HSI) which recorded a total value  traded of RM56.8mil, approximately 6.1% of the total warrants turnover.

Rubber glove makers still took on the centre stage last week with higher price volatility. All eyes were on glove giant Top Glove Corporation as it reported its best quarterly net profit on Thursday with RM1.29bil for 4QFY20 ended 31 August 2020, which is almost 18 times the RM74.17mil posted last year (The Edge Markets, 17 Sep). Its share price however, took a beating post earnings to tumble 7.6% to finish at RM7.79 on Thursday, before staging a minor rebound to end Friday at RM7.98, up 2.8% week-on-week (w-o-w). The volatile week also saw the share price of Supermax jumping a staggering 20% on Monday to close at RM9.00 before sinking for the next three days to end the week still up by 1.3% at RM7.60 on Friday. 

The holiday shortened week saw call warrants SUPERMX-C1I, TOPGLOV-C81 and TOPGLOV-C84 taking the top three spots of the most actively traded warrants with a total of 346.3mil, 166.2mil and 157.4 mil units traded, respectively. TOPGLOV-C81 was also the top traded warrant by value last week with a total turnover of RM90.6mil, followed by TOPGLOV-C84 with up to RM67.7mil in value traded. HARTA-C59 and SUPERMX-C1E were also among the popular warrants traded with a total volume of 112.2mil and 108.6mil units, respectively. 

Glove makers aside, warrants over the HSI were also quite popular among investors especially with the underlying HSI futures swinging within a range of 24,198 – 24,898 last week. Call warrants HSI-C9V and HSI-C9U clocked in 84.2mil and 70.3mil units respectively while put warrant HSI-HAY saw a total of 62.6mil units changing hands. The spot month September HSI futures contract ended the week little changed at 24,456.0.

Top warrants by volume traded:

Warrant nameVolume
(mil.)
IssuerExercise level / priceExpiry date
SUPERMX-C1I346.3Kenanga14.0026 Jul 2021
TOPGLOV-C81166.2CIMB5.6731 Dec 2020
TOPGLOV-C84157.4CIMB6.0029 Jan 2021
HARTA-C59112.2Kenanga23.0026 Jul 2021
SUPERMX-C1E108.6Ambank14.0030 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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