Hang Seng In­dex war­rants back in fo­cus

The Sun (Malaysia) - - SUNBIZ -

LAST week, the Hang Seng In­dex (HSI) started the week strongly, ral­ly­ing a to­tal of 655 points (2.8%) for four con­sec­u­tive days, be­fore fall­ing 0.4% on Fri­day to 23,851.82 points. In re­sponse to the mar­ket strength, war­rants over the HSI gar­nered big de­mand among in­vestors through­out the week, con­tribut­ing about 50% of the to­tal war­rants turnover, record­ing RM173.9 mil­lion.

HSI-C36 was the most ac­tive war­rant as bullish in­vestors ac­tively traded 88.2 mil­lion units. In­vestors took prof­its, sell­ing back 9.3 mil­lion units of HSI-C36 whose bid price gained an im­pres­sive 24.5% to close at RM0.585 on Fri­day. In­vestors should note that HSI-C36 will ex­pire on Oct 28, and thus its last trad­ing day will be on Oct 25.

The put war­rant, HSI-H63, also at­tracted de­mand among in­vestors who were bet­ting on a mar­ket re­ver­sal, buy­ing 6.5 mil­lion units. The put war­rants move in an op­po­site di­rec­tion to their un­der­ly­ing, fall­ing in value as the HSI fu­tures in­crease. As a re­sult, the HSI-H63 fell 24.3% over the week to RM0.405.

Back home, war­rant SKPETRO-C30 over the oil and gas (O&G) counter, was in the spot­light last week, record­ing a to­tal trad­ing vol­ume of 39.1 mil­lion. SKPETRO-C30 whose bid price tracked its un­der­ly­ing share price closely jumped 11.1% to RM0.100 as Sa­pu­raK­en­cana gained a to­tal 5.1% for the week.

Sa­pu­raK­en­cana ex­pe­ri­enced strong up­ward mo­men­tum in its share price after the O&G ser­vices provider was re­cently awarded three con­tracts with a com­bined value of about US$215 mil­lion (RM893.2 mil­lion).

Sa­pu­raK­en­cana was quoted in Sun­Biz on Oct 3 as say­ing that they ex­pect th­ese jobs, and the po­ten­tial con­tract ex­ten­sions, will con­trib­ute pos­i­tively to­wards their earn­ings

To view the full list of struc­tured war­rants avail­able on Bursa Malaysia, 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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