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HSI warrants in the spotlight as futures extend higher

Warrants Commentary (10 to 14 February)

The second week of February witnessed a total warrants turnover of RM285.3mil amid a less volatile week, which contributed to a 21.8% week-on-week (w-o-w) drop in turnover for the overall warrants market. Warrants over the Hang Seng Index (HSI) and the iShares China A50 Index ETF (China A50 ETF, 2823.HK) continued to take centre stage as prices extend their gains further over the week despite the coronavirus fallout in China having no end in sight.  Continue reading HSI warrants in the spotlight as futures extend higher

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Volatile week for the markets

Warrants Commentary (3 to 7 February)

Last week, the warrants market in Malaysia recorded a total turnover of RM364.7mil, 14.5% higher than the previous week. All eyes were on the Chinese market as it reopened on Monday following the Chinese New Year holiday that was extended in view of the coronavirus outbreak. The iShares China A50 Index ETF (China A50 ETF, 2823.HK), designed to track the performance of the 50 largest A-Share companies listed on the Shanghai and Shenzhen stock exchanges (as measured by the FTSE China A50 Index), fell 2.2% to HKD13.38 last Monday, causing investors to take profit on 1.1mil units of the put warrant A50CHIN-H37 as it gained 21%. Over the week, warrants over the China A50 ETF saw increased popularity, with more than RM5mil traded each day, taking up 8.5% of last week’s warrant turnover.

Continue reading Volatile week for the markets
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HSI-H8K stole the limelight with 197.0% gain w-o-w

Warrants Commentary (28 to 31 January)

The Malaysia warrants market caught fire last week with an RM318.5mil turnover despite the short trading week due to the Chinese New Year holidays in Malaysia (Monday) and Hong Kong (Monday and Tuesday). We saw a surge in warrants interest among investors amid worries over the Wuhan coronavirus outbreak at a global scale. Out of all warrants listed on Bursa Malaysia, warrants over the Hang Seng Index (HSI) were the most popular with RM200.7mil traded, making up 63.0% of the total warrants turnover.

The HSI futures suffered its worst weekly performance since July 2019. On Wednesday when the HSI futures resumed trading, it plunged 3.0% to close slightly above the 27,000 mark. The HSI futures opened in the red on Thursday and proceeded to finish 2.6% lower at 26,350 as the total coronavirus infections and death numbers continued to rise. The World Health Organization (WHO) declared the Wuhan coronavirus a global emergency (BBC, 31 Jan), causing the Hong Kong index futures to react negatively, falling another 0.4% to 26,233 points on Friday; down 5.9% week-on-week (w-o-w). 

Among the popular warrants last week, put warrant HSI-H8K topped the list with RM91.3mil traded as the put warrant recorded a whopping 197.0% return w-o-w. Put warrant HSI-H8T and HSI-H8W were also actively traded last week with RM44.8mil and RM19.2 turnover respectively, as the HSI futures were trading lower throughout the week; the put warrants moved in an opposite direction to the underlying, in this case the HSI futures, causing the put warrants to rise in value. However, bargain hunters took the opportunity to accumulate call warrant HSI-C7Q at a lower price last week, taking home a total 26.5mil units, which resulted in this call warrant being fully sold out.

Warrants over the iShares China A50 Index ETF (China A50 ETF, 2823 HK) also saw a surge in trading interest last week. The China A50 ETF plummeted more than 7.6% w-o-w as China authorities decided to extend the Chinese New Year break by 3 days due to the coronavirus (Bloomberg, 27 Jan). The most notable China A50 ETF warrant was put warrant A50CHIN-H37, which saw RM12.9mil traded. Bearish investors net bought 2.9mil units of this warrant last week as its bid price jumped 138.5% w-o-w.

Top warrants by value traded:

Warrant name Value
(RM’mil.)
Issuer Exercise level/price Expiry date
HSI-H8K 91.3 Macquarie 27,000 27 Feb 2020
HSI-H8T 44.8 Macquarie 27,600 30 Mar 2020
HSI-H8W 19.2 Macquarie 25,400 30 Mar 2020
HSI-C7Q 17.4 Macquarie 28,400 30 Mar 2020
A50CHIN-H37 12.9 Macquarie 14.00 29 Apr 2020

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 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.

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HSI-C7J crowned top traded amid global headlines

Warrants Commentary (13 to 17 January)

Trading activity in the Malaysian warrants market picked up last week with the overall warrants turnover growing approximately 10.0% to RM248.8mil.  As usual, the Hang Seng Index (HSI) warrants remained major contributors, constituting 66.3% of total warrants turnover, followed by warrants over shares, which made up approximately 30.0% of turnover.

Continue reading HSI-C7J crowned top traded amid global headlines
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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.

Continue reading Volatile week for the global markets
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Warrants over HSI, Ekovest and Datasonic most active

Warrants Commentary (9 December to 13 December)

The overall warrants turnover for the second week of December rose a slight 0.5% week-on-week (w-o-w) to RM248.5mil, lifted by active trading in warrants over Malaysian counters. Trading in warrants over the Hang Seng Index (HSI) was slower, contributing 69% of turnover, while warrants over Malaysian counters contributed more than 30%.

Continue reading Warrants over HSI, Ekovest and Datasonic most active
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Slower market, though HSI warrants remain active

Warrants Commentary (2 to 6 December)

Last week, the Malaysia warrants market saw a general slowdown in trading activity as we entered into the first week of December, though warrants over the Hang Seng Index (HSI) still maintained an average daily turnover of RM37.2mil. Total turnover came up to RM247.5mil, a decline from RM319.3mil in the previous week.  Continue reading Slower market, though HSI warrants remain active

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Newsbreaks spur the Malaysia warrants market

Warrants Commentary (25 to 29 November)

Last Sunday (24 Nov), Hong Kong held its district council elections as protests paused to allow the elections to proceed peacefully. The pro-democracy party won a landslide victory. The Hang Seng Index (HSI) surged 1.5% to 26,993.0 points on Monday, prompting investors to take profit on 17.5mil units of call warrant HSI-C7J and 13.7mil units of HSI-C7F as they rose 14.3% and 24.3%, respectively. Investors who expected a downturn bought the put warrants, namely HSI-H8E and HSI-H8F. The index then fell 0.3% on Tuesday and rose 0.1% on Wednesday.

Continue reading Newsbreaks spur the Malaysia warrants market
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Trading in HSI warrants surge as HSI suffers biggest decline in months

Warrants Commentary (11 to 15 November)

The turnover for Malaysia warrants market for the week ended 15 November 2019 surged 17.5% to RM341.8mil week-on-week (w-o-w). There was an increased trading activity in the Hang Seng Index (HSI) warrants, as the turnover increased by 36.2% to RM287.4mil from the previous week.

Last Monday (11 Nov), the HSI had its worst day in more than three months, tumbling by more than 700 points or 2.6% to finish  below  the 27,000  level at 26,926.6. Although the index rebounded 0.5% on Tuesday, it plunged a total 2.8% for the next two days, before eking out small gains  to close at 26,326.7 on Friday.

Continue reading Trading in HSI warrants surge as HSI suffers biggest decline in months