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HSI-C5D grabs limelight in volatile Hong Kong market

Warrants Commentary (18 Mar to 22 Mar 2019)

Total warrants turnover for the week ended 22 March 2019 recorded at RM455.5mil, largely due to
warrants over the Hang Seng Index (HSI), which made up 69.6% of turnover. Warrants over the iShares
China A50 ETF Index have also been gaining traction in recent weeks, with its total value traded coming
in at approximately 11% of total turnover.

Continue reading HSI-C5D grabs limelight in volatile Hong Kong market
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Call warrant over VSI and AIRASIA took centre stage

Warrants Commentary (25 Feb to 1 Mar 2019)

Last week, call warrants over V.S. Industry (VSI) have garnered investors’ interests as the underlying share price closed at one-month high of RM1.09 last Friday, gaining 10.6% week-on-week (w-o-w). VS-C10 emerged as the top traded warrant over Malaysian counters last week, recording a total trading volume of 50.9 mil. units. As the VSI’s share price recorded the most gains on Friday, investors who accumulated VS-C10 in the past few weeks took profit on their positions, selling back 2.6 mil. units on the same day. Continue reading Call warrant over VSI and AIRASIA took centre stage

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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%.   Continue reading Almost a perfect week for FGV

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HSI warrants popular amid volatile markets

Warrants Commentary (28 to 31 Jan)

Last week, overall warrants turnover rose 22.4% to RM303.9mil despite another 4-day trading week due to the Federal Territory Day on Friday (1 Feb). Trading in warrants over the Hang Seng Index (HSI) represented 75% of total warrants turnover. Although the HSI had a lackluster performance at the start of the week, it started to recover from Wednesday with a 0.4% increase ahead of the Federal Reserve (Fed) policy meeting. The HSI then jumped 1.1% last Thursday.

In Wednesday’s meeting, chairman Jerome Powell said the Fed will be patient on future rate hikes before making any further moves, discarding its promises of “further gradual increases” in interest rates (Reuters, 30 Jan). The Fed also said it is willing to adjust the size of its balance-sheet runoff and perhaps end it altogether, amid worries that it contributed to the stock market selloff last December (Market Watch, 30 Jan).

The HSI put warrant HSI-H4X took the crown as the top traded warrant with 138.8mil units traded over last week. On Monday, investors collected 1.6mil units of this warrant and eventually net sold 9.2mil units over the next 3 days. HSI-H4X moved in an opposite direction to the underlying, losing 19% as the HSI futures advanced 1.5% last Thursday. Investors should note that all HSI warrants started tracking the HSI February futures from last Tuesday (29 Jan).

Meanwhile, the HSI call warrant HSI-C3W came in second, recording a total trading volume of 100.3mil units. HSI-C3W has an effective gearing of 14.6 times, meaning it moves approximately 14.6% for every 1% move in the underlying futures (all other factors held constant). HSI-C3W gained 19.4% week-on-week (w-o-w).

On the local front, the call warrant over FGV Holdings (FGV), FGV-C63 emerged as the most popular warrant over Malaysian counters, with 40.7mil units traded. FGV-C63’s bid price fell 11.5% while its mother share inched down 0.02% w-o-w to close at RM1.00 on Thursday.

Investors should note that Bursa Malaysia will be closed for 2.5 days, starting from the afternoon session on Monday (4 Feb) up to Wednesday (6 Feb), for the Chinese New Year holidays. The Hong Kong Exchange will be closed up to Thursday (7 Feb). Have a happy and prosperous Chinese New Year!

Top warrants by volume traded:

Warrant name Volume
(’mil)
Issuer Exercise level Expiry date
HSI-H4X 138.8 Macquarie 25,600 28 Mar 19
HSI-C3W 100.3 Macquarie 28,200 28 Mar 19
HSI-C5A 62.6 Macquarie 29,200 29 Apr 19
HSI-C5B 54.8 Macquarie 27,800 29 Apr 19
HSI-H4Y 41.8 Macquarie 27,000 28 Mar 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.
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FGV-C63 took the crown among stock warrants again

Warrants Commentary (22 to 25 Jan)

Last week’s warrants turnover came in at RM248.2mil, 31.2% lower than the previous week on a slower market, and also due to a shorter trading week with the Thaipusam holiday last Monday. One of the hot stocks last week were shares of FGV Holdings (FGV), with more than 189.0mil shares traded. Continue reading FGV-C63 took the crown among stock warrants again

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Popularity on the rise for warrants over A50 ETF

Warrants Commentary (3 to 7 Dec)

Trading activity in warrants over the iShares FTSE China A50 Index ETF (A50 ETF) continued to rise last week, representing 21.3% of total warrants turnover, an increase from 15.6% in the previous week. The A50 ETF saw a volatile week, rising a total 4.1% over two days to close at HKD12.56 on Tuesday, as news broke on the US-China 90 day trade war truce. It thereafter fell a total 4.0% over the rest of the week amidst doubts on whether the trade differences can be resolved in time, ending the week at HKD12.06, unchanged week-on-week (w-o-w).

The most popular warrant over the A50 ETF was call warrant A50CHIN-C32, which saw 86.8mil units traded. The warrant tracked the underlying A50 ETF closely, rising 24.6% over the first two days of the week to RM0.430, and declining 22.1% over the rest of last week to finish at RM0.335. On the other hand, the most popular put warrant over the A50 ETF was A50CHIN-H27, which saw 54.5mil units traded. Put warrants move in an opposite direction to the underlying, increasing in value as the underlying declines.

In the meantime, the warrants market was once again dominated by the warrants over the Hang Seng Index (HSI), which comprised a still-hefty 63.7% of total warrants turnover. The HSI saw the same rise and fall as the A50 ETF last week, but closed down a steeper 1.7% w-o-w. With increased volatility, both the call and put warrants over the HSI were actively traded, though put warrant HSI-H4W topped the charts at 159.7mil units traded and call warrant HSI-C3W came in second with 143.8mil units traded. Investors net sold 16.7mil units of HSI-H4W, and snapped up 25.0mil units of HSI-C3W over last week, resulting in the issuer’s inventory of the call warrant HSI-C3W being completely sold out.

On the local front, the call warrant over Genting Malaysia (GENM), GENM-C42, emerged as the top traded warrant over a Malaysian counter last week. This warrant saw 27.1mil units traded, as GENM’s share price is still reeling after taking a blow from the cancellation of their planned Century Fox World theme park. The share price rose a slight 0.3% w-o-w to close at RM2.87 on Friday.

Top 5 warrants by volume traded:

Warrant name Volume
(mil)
Issuer Exercise level Expiry date
HSI-H4W 159.7 Macquarie 24,200 28 Mar 19
HSI-C3W 143.8 Macquarie 28,200 28 Mar 19
HSI-C3X 128.1 Macquarie 26,800 28 Mar 19
HSI-H4O 103.5 Macquarie 25,400 30 Jan 19
A50CHIN-C32 86.8 Macquarie 12.50 28 Jun 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.
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Warrants over GENM traded up a storm

Warrants Commentary (26 Nov to 30 Nov)

Last week, the trading value of structured warrants increased by 10.4% to RM410.8mil. for the week as a result of active trading in warrants over Genting Malaysia (GENM).  The share price of GENM took a beating last Tuesday as its planned Century Fox World theme park hit a brick wall, potentially creating a Continue reading Warrants over GENM traded up a storm

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Hibiscus added to MSCI Global Small Cap Indexes

Warrants Commentary (12 Nov to 16 Nov)

Warrants over Hibiscus Petroleum (Hibiscus), an independent oil and gas upstream exploration and production company, were popular last week as news broke last Thursday (14 Nov) that Hibiscus was added to the MSCI Global Small Cap Indexes. The share price rose 5.9% in total on Thursday and Friday last week, ending the week at RM1.07. Continue reading Hibiscus added to MSCI Global Small Cap Indexes

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HSI puts actively traded in volatile market

Warrants Commentary (5 Nov to 9 Nov)

The Hang Seng Index (HSI) began last week on a bearish note, making a sharp U-turn from the surge in the week prior as the index tumbled 2.1% to 25,934.4 points last Monday. However, the HSI rebounded the following day, closing 0.7% higher as investors kept an eye on the US midterm election. After the election, the HSI rallied for the next two days, surging 0.4% in total to finish above the 26,000 level, before plunging 2.4% to 25,601.9 points on Friday. Continue reading HSI puts actively traded in volatile market