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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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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
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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