Follow Us For The Latest Updates

Follow Us For The Latest Updates

Warrants over Malaysian shares gain attention

Warrants Commentary (15 July to 19 July)

Last week was a quieter week for the warrants market, with turnover clocking in at RM400mil, 7.6% lower than the previous week, due to lower volumes throughout. However, we saw heightened activity in selected warrants over Malaysian shares, namely Ekovest and Petronas Chemical (PCHEM), while warrants over My E.G. Services (MYEG) remained popular.

The call warrant EKOVEST-CU saw 65.5mil units traded, earning the top spot for warrants over Malaysian shares in terms of volume traded. The shares had a turbulent week, starting the week with a 0.6% dip, followed by a 7.5% surge to RM0.860 on Tuesday. The shares then fell over the following 2 days, before ending 1.2% higher on Friday. Ekovest shares were up 3.7% week-on-week (w-o-w), while EKOVEST-CU’s bid price rose 7.7% w-o-w.

While MYEG-C68 expectedly secured a position in the top warrants list, the call warrant PCHEM-C33 saw a rush in activity as PCHEM shares fell in the first four days of last week, closing at RM7.62 on Thursday, down 9.5% week-to-date. Investors scrambled to collect this warrant, buying 29.1mil units over four days, as the warrant bid price tumbled 58.3% to RM0.025 in the same period. On Friday, the shares rebounded slightly, closing 2.5% higher to RM7.81, while PCHEM-C33’s bid price rose 20% to RM0.030. 

Meanwhile, warrants over the Hang Seng Index (HSI) continued to make up a large proportion of the market’s turnover, led by call warrant HSI-C5P with 200.4mil units traded and put warrant HSI-H6R with 182.1mil units traded. The HSI futures closed largely mixed last week, though the 1.4% rise on Friday to 28,821.0 points saved the futures from closing in the red as it ended the week 1.0% higher w-o-w. Bearish investors collected 6.6mil units of HSI-H6R on Friday alone, and close to 11mil units over last week.

In addition, call warrant HSI-C5J, with a slightly in-the-money exercise level of 28,800, came in third on the overall top warrants list with 179.5mil traded. Investors should note that this warrant will expire on the following Tuesday, 30 July 2019, and the last date to trade this warrant is this coming Thursday, 25 July 2019. Do exercise caution when trading warrants that are close to expiry as warrants tend to experience faster time decay (or faster erosion in the time value of a warrant) as they approach expiry. 

Top stock warrants by traded volume:

Warrant nameVolume
(mil)
IssuerExercise priceExpiry date
EKOVEST-CU65.5Macquarie1.1020 Dec 2019
MYEG-C6859.0Macquarie1.8531 Oct 2019
PCHEM-C3348.1Macquarie8.8831 Jan 2020
MYEG-C6532.4Macquarie1.5030 Sep 2019
AIRASIA-C8625.3Kenanga3.0031 Jan 2020

If you have any questions or need further assistance, please do not hesitate to contact us via email us at info@malaysiawarrants.com.my

To view the full list of structured warrants available on Bursa Malaysia, kindly visit malaysiawarrants.com.my

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:

Share on facebook
Share on twitter
Share on linkedin
Share on telegram

More Posts

market pulse

Tempered by MSCI portfolio re-balancing

The FBM KLCI started off the week on a dour note alongside with the weakness across regional peers on the increasing geopolitical tension between US and China. Still, the FBM KLCI recorded 95.82 pts on gain (+6.5% MoM) during November 2020. Although we see renewed volatility unfolding, we reckon that bargain hunting activities may take precedence after the sharp fall yesterday. On the other hand, we think that the lower liners are poised for further upsides, driven by the improved trading liquidity which may extend the rotational play.

What’s Trending (30th Nov 2020)

Vaccine companies continue to deliver positive news, as a third candidate, AstraZeneca has reported another positive trial results, casting hope for a foreseeable end to the pandemic despite raging increases in case numbers. Vaccine news, coupled with diminishing uncertainties on the political front in the US saw positive market sentiment globally throughout the week

Get Wiz

Final day of November, what have you traded?

The Bursa Exchange has been quite volatile last week and the FBM KLCI has turned negative at the time of writing going into the final day of the reporting season. Although the market was slightly negative, things are going well for our Daily Pick list

macquarie structured warrants 20200914

Lower overall warrants turnover for the week; HSI warrants back in focus

The overall warrants market turnover came in at RM593.0mil last week, dropping by approximately 26.8% versus the previous week as stocks over glove makers took a breather. Warrants over Malaysian shares still dominated the total turnover, making up approximately 85.2% of the total warrants turnover at RM505.5mil, followed by warrants over indices with RM41.8mil (7.0%) and warrants over foreign underlyings which made up the balance.

warrants-over-malaysian-shares-gain-attention-m-online