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Big rally in glove makers; TOPGLOV-C73 and KOSSAN-C6 in the spotlight 

Warrants Commentary (12 May to 15 May)

Last week, trading in the Malaysian warrants space saw significant improvement, surging 53.5% week-on-week (w-o-w) to RM389.0mil although the Bursa Malaysia only opened for four days as it was shut on Monday (11 May) for the Nuzul al-Quran holiday. Interestingly, warrants over the Malaysian shares were in the spotlight as its trading value spiked 139.8% w-o-w to RM242.8mil, making it the major contributor to last week’s overall warrants turnover. Meanwhile, trading in the Hang Seng Index (HSI) warrants were less active last week, representing 26.1% of turnover, followed by the FBM KLCI (KLCI) warrants which made up approximately 6.9%.  Continue reading Big rally in glove makers; TOPGLOV-C73 and KOSSAN-C6 in the spotlight 

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HSI-HAF sustains top position amid holiday-shortened week

The first week of May saw a slight climb in warrants trading activity despite it being another holiday-shortened week as the Malaysian market was closed on Thursday in conjunction with Wesak Day. The total warrants turnover for the week came in at RM257mil, which represented a 14.1% rise compared to the previous week, with warrants over the Hang Seng Index (HSI) taking the top spot with RM111.1mil traded, making up 43.2% of the total warrants turnover, followed by warrants over shares which made up approximately 43.1%, while warrants over the FBM KLCI and S&P 500® Index (SP500) together constituted approximately 13.7%. Continue reading HSI-HAF sustains top position amid holiday-shortened week

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Warrants market winds down for long weekend

The last week of April saw a slowdown in warrants trading activity ahead of the long weekend. The Hong Kong market was shut last Thursday for the Birthday of the Buddha i.e. no market making for warrants over the Hang Seng Index (HSI) and iShares China A50 Index ETF, while both the Malaysia and Hong Kong markets were shut last Friday for Labour Day. Average daily turnover for the week clocked in at RM57.9mil per day, a dip from the previous week’s RM83.6mil, with warrants over the HSI taking up 50.5% of total turnover for the week despite the additional day off. Continue reading Warrants market winds down for long weekend

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Warrants turnover spike 40% amid volatile markets

Overall markets remained volatile last week as the world is still battling the coronavirus outbreak which has negatively impacted economies across the globe. Recently, China recorded the biggest decline in its 1Q20 gross domestic product (GDP) in decades as the country’s economy slumped by 6.8%, mainly dragged by the pandemic. The International Monetary Fund (IMF) projected that global GDP will shrink 3% this year – compared to its pre-pandemic prediction of a 3.3% expansion. The economic contraction may continue into 2021 should the coronavirus continue to linger, marking the deepest dive since the Great Depression (Bloomberg, 14 Apr).   Continue reading Warrants turnover spike 40% amid volatile markets

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HSI-H8M still active but lower turnover as expiry looms

 

The Malaysia warrants market saw softer trading activity last week with RM290.4mil traded, 21.2% lower than the prior week. The decline can be attributed to a shorter trading week for the Hang Seng Index (HSI) as the Hong Kong market was shut on Monday (13 Apr) in conjunction with the Easter holiday. Yet, warrants over the HSI still dominated the warrants space with a RM160.0mil turnover, approximately 56.4% of the total warrants market. Continue reading HSI-H8M still active but lower turnover as expiry looms

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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