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Trading in HSI warrants lower despite HSI’s 1.7% recovery

Warrants Commentary (19 August to 23 August)

Last week, the Hang Seng Index (HSI) showed a recovery, trading above the 26,000 level for the whole week, which was supported by Beijing’s plan to reform its interest rate system and lower borrowing costs (Bloomberg, 19 August). On Tuesday (20 August), China made its first move to implement a long-awaited change to its interest rate policy by lowering its lending reference rate to 4.25%  through a new market-oriented pricing mechanism. This move would result in cheaper borrowing costs for companies, providing a modest easing of monetary conditions in China’s economy amid the trade war with the United States.

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Put warrant HSI-H6Q recorded 53.0% gain for the week

Warrants Commentary (5 August to 9 August)

The Malaysian warrants market was heated up last week with a total RM594.8mil. traded, the highest weekly turnover since May 2019. The increased trading activity can be attributed to rising volatility in the global equity markets which includes the Hang Seng Index (HSI). Warrants over the HSI continued to dominate the warrants space with RM463.9mil. in weekly turnover, making up a staggering 78.0% of the total warrants market.

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Warrants trading activity higher last week

Warrants Commentary (22 July to 26 July)

Trading activity in structured warrants increased last week as the overall warrants turnover surged 19.6% to RM478.4mil. Warrants over the Hang Seng Index (HSI) remained one of the biggest contributors to the Malaysian warrants space, contributing 68% of the warrants turnover while single stock warrants contributed approximately 29.2%. 

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Warrants over Malaysian shares gain attention

Warrants Commentary (15 July to 19 July)

Last week was a quieter week for the warrants market, with turnover clocking in at RM400mil, 7.6% lower than the previous week, due to lower volumes throughout. However, we saw heightened activity in selected warrants over Malaysian shares, namely Ekovest and Petronas Chemical (PCHEM), while warrants over My E.G. Services (MYEG) remained popular.

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HSI-C5P and MYEG-C68 stole the limelight

Warrants Commentary (8 July to 12 July)

The Malaysia warrants market recorded a turnover of RM432.5mil. last week, 13.9% higher than the preceding week. Warrants over the Hang Seng Index (HSI) continued to be investors’ favourite with RM317.1mil. traded, mainly driven by the increased volatility in Asia’s most active stock market.

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G20 meeting boosts market sentiment for HSI

Warrants Commentary (1 July to 5 July)

Last week, despite the protests occurring in Hong Kong on its public holiday in conjunction with the HKSAR Establishment Day on Monday, the Hang Seng Index (HSI) had a strong rally, trading above the 28,000 level when it reopened from the long weekend.  Market sentiments were boosted after the US-China meeting at the Group of 20 (G20) Summit last Saturday, which ended with a truce as both parties agreed to resume talks that have stalled since May. The meeting saw Trump putting on hold the additional tariffs on USD300bil. worth of Chinese products which he had earlier threatened.

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TM and MYEG draw attention as investors await G20 outcome

Warrants Commentary (24 June to 28 June)

Trading in structured warrants over Malaysian shares grew a fair share this week; top names include Telekom Malaysia (TM) and My EG Services (MYEG). Warrants over shares comprised 22.8% of turnover (RM101.5mil) last week, compared to 15.4% (RM89.2mil) in the previous week. However, trading in warrants over the Hang Seng Index (HSI) and iShares China A50 Index ETF slowed last week, though they still comprised 72.7% and 4.0% of turnover, respectively. 

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Volatility continues as trade war intensifies

Warrants Commentary (17 June to 21 June)

Last week, President Trump announced on a Twitter post that Chinese leader Xi Jinping has agreed to meet with him at the G20 summit in Japan.  The announcement acted as a catalyst for the Hang Seng Index (HSI) futures, pushing it up 702 points or 2.6% on Wednesday to close at 28,146. On Thursday, riding on the same momentum, the HSI futures gained an additional 1.3% to 28,515, before closing 0.3% lower to end the week at 28,422 points. Week-on-week, the HSI futures rallied 5.1%, the highest gains since November last year.

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