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Almost a perfect week for FGV

Warrants Commentary (18 to 22 February 2019)

Warrants over FGV Holdings (FGV) were the most popular warrants over Malaysian shares, with more than RM29.3mil. traded for the week.  The share price almost enjoyed a perfectly green week, with 4 consecutive days of gains before ending Friday 3.1% lower to RM1.25. Week-on-week (w-o-w), FGV’s share price was up 10.6%.  

Among the many warrants over FGV, FGV-C63 was the most popular warrant with more than RM16.2mil. traded for the week.  The warrant tracked the underlying closely, gaining as much as 21.0% on Wednesday to close at RM0.230, and ended the week 38.2% higher w-o-w at RM0.235.  FGV-C63 has a deep in-the-money (ITM) exercise price of RM0.950, which has made this warrant more expensive to trade, and has a lower gearing level. The issuer of this warrant has widened the offer price to prevent further buying of this warrant.  Existing holders of this warrant will not be disadvantaged as the bid price of the warrant will continue tracking the underlying’s share price. With the offer price widened, investors were seen shifting their focus to FGV-C61, which has a higher exercise price of RM1.35.  

VS Industry (VSI) was also another popular underlying, with VS-C9 and VS-C10 leading the way.  The share price of VSI briefly breached the RM1.00 resistance level on Wednesday after an impressive 7.5% increase.  However, on Friday the share price failed to remain above this level and closed at RM0.985, a w-o-w increase of 6.5%.  Between both warrants, VS-C10 is cheaper in absolute price due to its higher exercise price of RM1.20, compared to VS-C9’s ITM exercise price of RM0.880.  These two warrants are expiring around the same time, on 2 Aug 2019 and 31 July 2019 respectively.

Meanwhile, warrants over the Hang Seng Index (HSI) continued to make up the bulk of turnover.  Other than a 0.6% dip last Tuesday, the HSI futures remained positive throughout the week with a w-o-w gain of 3.4%.  With the HSI on an upward momentum, investors were seen actively trading puts HSI-H4Y and HSI-H4X, with both warrants moving in and out of the sold-out list.  Call warrant HSI-C3W was the most active HSI warrant, enjoying a whopping w-o-w gain of 64.4% to close at RM0.485.

Top warrants by value traded:

Warrant name Value
(RM’mil)
Issuer Exercise level / Exercise price (HKD) Expiry date
HSI-C3W 133.1 Macquarie 28,200 28 Mar 19
HSI-C5D 54.9 Macquarie 30,000 30 May 19
HSI-H6F 46.9 Macquarie 26,600 30 May 19
HSI-H4Y 42.6 Macquarie 27,000 28 Mar 19
A50CHIN-C34 41.2 RHB 10.80 30 Aug 19

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.