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Warrants over HSI and rubber gloves most active

Despite the surge in stock markets, overall warrants turnover last week fell slightly by 6.1% to RM796.4mil. Active trading remained in warrants over the Malaysian shares with a trading value recording at RM724.1mil, representing approximately 90% of overall warrants turnover last week.
macquarie structured warrants 20200914

Stock markets rallied worldwide last week following the results of the US presidential election as well as promising trial results on the Covid-19 vaccine announced by Pfizer and BioNTech, citing a 90% effective rate. Week-on-week (w-o-w), foreign indices closed higher – the S&P 500® Index rose 2.2% while the Hang Seng Index (HSI) soared 1.7%. Meanwhile, the local benchmark index FBM KLCI jumped 4.6% w-o-w, partly boosted by the recent 3Q20 gross domestic product (GDP) results that came in better than expected, albeit shrinking by 2.7%. 

Despite the surge in stock markets, overall warrants turnover last week fell slightly by 6.1% to RM796.4mil. Active trading remained in warrants over the Malaysian shares with a trading value recording at RM724.1mil, representing approximately 90% of overall warrants turnover last week.  

Put warrant HSI-HDI (expiry date 30 December 2020) was the most popular warrant, recording the highest trading volume of 180.2mil units. This put warrant, which moved in an opposite direction to the underlying HSI futures, fell 37.5% w-o-w and saw investors net buying 18.3mil units over the week. Put warrant HSI-HDE and call warrant HSI-CBB were the second and third most active HSI warrants with investors trading 54.6mil and 41.6mil units, respectively. These warrants are expiring soon on 27 November 2020; investors should take note that the time decay of warrants approaching expiry accelerates at a much faster rate. 

On the local front, SUPERMX-C1I was in investors’ focus, becoming the most active warrant over Malaysian shares with a total traded volume of 109.9mil units. Another warrant over a rubber glove counter i.e. COMFORT-CC also remained in the top 5 most active warrants list with investors trading 77.3mil units. The share price of Supermax and Comfort declined 10.1% w-o-w and 8.2% w-o-w, respectively.

Finally, the newly listed MAHSING-C30 made a roaring debut on its first listing day last Friday as investors bought over 30mil units, resulting in this currently warrant having less than 40% in the issuer’s inventory. If the warrant is sold out, the warrant’s issuer can no longer provide an offer price and the warrant’s market price may be inflated by other investors queuing and transacting the warrant in the market. Do ensure to check the warrant’s live matrix to see its fair bid price before entering a trade.

Top warrants by volume traded:

Warrant nameVolume
(mil.)
IssuerExercise level/priceExpiry date
HSI-HDI180.2Macquarie23,40030 Dec 2020
SUPERMX-C1I109.9Kenanga14.0026 Jul 2021
COMFORT-CC77.3Kenanga5.0016 Aug 2021
GDEX-CS75.2RHB0.40027 Apr 2021
PBBANK-C4666.2Kenanga18.5015 Jan 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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