Trad­ing in war­rants over HSI soars as in­dex re­treats

The Sun (Malaysia) - - SUNBIZ -

THE Hong Kong mar­ket had a rough start last week, with the Hang Seng In­dex (HSI) los­ing 1.3% on Tues­day. The HSI con­tin­ued to slide for three con­sec­u­tive days be­fore gain­ing 0.9% to close at 23,233.31 on Fri­day, los­ing as much as 2.6% for the week.

War­rants over the HSI were ac­tively traded, with call war­rant HSI-C36 lead­ing the pack. In­vestors net bought 3.2 mil­lion units out of the 66.7 mil­lion traded last week as the call war­rant lost 50%. In­vestors should note that HSI-C36 will ex­pire on Oct 28 and Oct 25 will be its last trad­ing day.

HSI-C66, one of the lat­est HSI war­rants to be listed on Bursa Malaysia, emerged as an in­vestor favourite, with 51.1 mil­lion units chang­ing hands. In­vestors were seen ac­cu­mu­lat­ing the call war­rant which ex­pires on March 30, 2017 with a strike level of 26,000, tak­ing home 8.3 mil­lion last week as the un­der­ly­ing in­dex re­treated. The call war­rant closed 16.1% lower, week-on-week.

There was de­mand for put war­rant HSI-H63 as some in­vestors took an op­pos­ing view and ac­cu­mu­lated the put war­rant, buy­ing 1.2 mil­lion units on Fri­day. The put war­rant moved against the fall­ing mar­ket and closed 21.0% higher at RM0.490. As of


War­rant Name HSI-C36 MYEG-CY FGV-C16 HSI-C66 UEMS-C28 Vol­ume (mil. units) 59.9 54.6 43.8 46.4 42.9 Clos­ing Bid (RM) 0.285 0.125 0.205 0.390 0.065

Fri­day, a to­tal of 4.4 mil­lion units of SI-H63 are held by in­vestors.

In war­rants over Malaysian coun­ters, in­vestors were seen sell­ing back 8.1 mil­lion units of AAX-CX last Mon­day, echo­ing its un­der­ly­ing share price fall of 1.3%. There were 39.1 mil­lion units traded as the war­rant gained 11.1% week-on-week, clos­ing at RM0.050. The war­rant of­fers an ef­fec­tive gear­ing of 3.0x, which means, if other fac­tors held con­stant, AAX-CX tends to move about 3.0% for ev­ery 1% move in its un­der­ly­ing share price.

Else­where, MYEG-CY and FGV-C16 also recorded high trad­ing vol­umes and both made it to the top 5 most ac­tive struc­tured Is­suer Ex­er­cise Price (RM) 23,200 2.15 1.95 26,000 1.05

war­rants traded. MYEG-CY saw in­vestors trad­ing 56.1 mil­lion units while FGV-C16 had 51.2 mil­lion units traded.

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

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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