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MYEG warrants took center stage as shares plunged 25%

The Asian market closed mixed last Friday after China delivered a weaker-than-expected 3Q18 gross domestic product (GDP) growth, which came in at 6.5% (vs 6.7% in 2Q18). Most Chinese stocks had a sharp sell-off after China’s GDP result but they made a strong comeback in the afternoon following a series of measures announced by the Chinese leaders to support the struggling stock market. At the close on Friday, the Shanghai Stock Exchange Composite Index erased Thursday’s decline, rebounding 2.6% to 2,550.5 points while the Hang Seng Index (HSI) surged 0.4% to 25,561.4 points.

Investors were seen optimistic that the HSI may continue to rise further and hence they actively traded call warrants over HSI. HSI-C3V topped the warrant chart with 155.2mil. units traded while HSI-C3X had investors trading approximately 95.0mil. units. At the end of last week, bullish investors took home 7.8mil. units of HSI-C3V and 1.7mil. units of HSI-C3X; in which both warrants gained 24.3% and 11.3% respectively.

Meanwhile, in the Malaysian market, My E.G. Services (MYEG) shares stole the spotlight last Friday as the share price declined 30% to its intra-day low at RM1.05 and hit a limit-down just before lunch break. The shares were thereafter suspended in the afternoon session following the company’s request as they were seeking clarification from the Malaysian Anti-Corruption Commission (MACC) on the details of the charges. Earlier, MYEG along with Datasonic, were mentioned in the criminal charges against Malaysia’s former deputy prime minister Datuk Seri Ahmad Zahid Hamidi and one of the charges against Zahid was due to him allegedly having received 10 cheques worth RM5 mil. to help a company secure a MYEG project. However, by late Friday evening, MYEG clarified that the company and its board of directors are not under investigation nor a party to the investigation leading to the charges against the former deputy prime minister.

The meltdown in the MYEG share price prompted investors to heavily trade the MYEG call warrants. Most notably, the newly listed MYEG-C52 emerged as the most active warrant over Malaysian counters last Friday with a total 12.4mil. units changing hands. Bargain hunters accumulated 4.2mil. units of MYEG-C52 last week with the bid price tumbling 57.1% week-on-week.

Top 5 warrants over Malaysian counter by volume:

Warrant name Volume
(’mil.)
Issuer Exercise price Expiry date
SUPERMX-C45 46.9 RHB 3.35 13 Dec 2018
TOPGLOV-C40 42.5 RHB 11.80

26 Mar 2019

MYEG-C52 41.6 Macquarie 2.30 30 Apr 2019
TOPGLOV-C39 31.2 Macquarie 12.88 28 Feb 2019
HIBISCS-CI 30.4 Macquarie 1.10 31 Jan 2019

 

If you have any questions or need further assistance, please do not hesitate to 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.