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Index warrants dominate the warrants market

Index warrants continue to dominate the Malaysian warrants market, with the top ten warrants by turnover last week consisting of five warrants over the Hang Seng Index (HSI) (3 call warrants and 2 put warrants), three warrants over the S&P 500® Index (SP500) (2 put warrants and 1 call warrant) and 2 warrants over the local benchmark FBM KLCI (both put warrants). Total turnover came in at RM442.2mil, 8.5% higher than the previous week. Approximately 91.6% of last week’s turnover were in index warrants. Continue reading Index warrants dominate the warrants market

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SP500-CK surged 260.7% as S&P 500 futures rebounded

The Malaysia warrants market picked up more trading momentum last week with a RM407.6mil turnover, 23.4% higher than the previous week. While markets remained volatile amid the Covid-19 pandemic, global equities erased some of the earlier losses following more monetary easing by central banks plus the additional stimulus measures proposed by local governments to dampen the economic impact of the contagious virus. Continue reading SP500-CK surged 260.7% as S&P 500 futures rebounded

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Growing demand in index warrants as markets remain volatile

Global stock markets remained turbulent with mounting fears over the rapidly spreading coronavirus that has aggressively caused major blows to economies around the world including Malaysia, as the government enforces a movement restriction order from Wednesday (18 Mar). On Sunday (15 Mar), the US Federal Reserve (the Fed) announced another emergency rate cut,  the largest in the Fed’s 100-year history, reducing interest rates by 1.00% to between 0% and 0.25%. Similarly, over 50 countries rushed to reduce interest rates and infuse liquidity, including Australia (-0.25% to 0.25%), New Zealand (-0.75% to 0.25%), Indonesia (-0.25% to 4.5%) and South Korea (-0.50% to 0.75%), among others.  Continue reading Growing demand in index warrants as markets remain volatile

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Index warrants take centre stage amid roller coaster week

It was an action-packed week filled with wild stock market swings as markets worldwide tumbled amid fears of an economic catastrophe as the coronavirus crisis escalates. The volatile week saw a total warrants turnover of RM401.0mil which represented a 16.9% jump week-on-week (w-o-w) with index warrants stealing the limelight following the global meltdown which hammered investor confidence. Continue reading Index warrants take centre stage amid roller coaster week

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5 Ways to Survive the Bear Market

KLCI dips below 1,400 points? 5 ways to survive in this Market

This week we saw the KLCI dipped below the 1,400pt level! The last time it went that low was in 2011, which was almost a decade ago. The market sentiment turned sharply volatile following the World Health Organisation’s (WHO) move to declare Coronavirus Disease 2019 (Covid-2019) as a global pandemic.  Continue reading 5 Ways to Survive the Bear Market

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Large moves in net positions for HSI warrants

The first week of March recorded a warrants turnover of RM342.9mil, an 18.0% decline from the previous week. Despite the overall decline in the week’s trading activity within the local Bourse by 27.1%, trading activity in warrants remained robust as investors actively traded the warrants over the Hang Seng Index (HSI), which comprised 59.9% of the market, as well as focussed on warrants over the FBM KLCI and S&P 500® Index (SP500), which saw a 14.3% and 175.9% week-on-week (w-o-w) increase in turnover, respectively. Continue reading Large moves in net positions for HSI warrants

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Warrants trading activity surged on heightened market volatility

Warrants Commentary (24 to 28 February)

Trading activity in structured warrants rose in a highly volatile market last week on the back of increased COVID-19 infections in around 50 countries across the globe, plus the political turmoil and uncertainties surrounding various countries, including Malaysia.  Overall warrants turnover jumped 39.8% week-on-week (w-o-w) to RM418.3mil while the average daily turnover recorded at RM83.7mil, 22.3% higher than the daily average over the month of February 2020. Meanwhile, warrants over the Hang Seng Index (HSI) made up 58.6% of turnover, while the warrants over the S&P 500® Index (SP500), which saw a new listing of a pair of call and put warrant in February following the expiry of the last two warrants in December 2019, contributed 11.9%.  Continue reading Warrants trading activity surged on heightened market volatility

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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