MyEG-CY stands out from the pack
TRADING interest in warrants over the Malaysian counters remained strong for the week ending Oct 21, registering 57.1% of the total warrants turnover at RM119.0 million.
MYEG-CY, a call warrant over My E.G. Services Bhd, stood out from the pack, recording a trading volume of 127.9 million units over the week, an increase of 128.0%.
The heavy trading in the warrant over My E.G. was not a surprise as the company posted strong gains last week, surging a total of 5.6% from Tuesday to Thursday.
In terms of net positions, investors net bought 2.6 million units of MYEG-CY, which left the warrant “sold out”. Investors should take caution before buying a soldout warrant, as the market maker can no longer provide an offer and the bid price may be inflated by other investors.
Warrant AAX-CX over AirAsia X made a comeback last week, making its way to the top 5 most active warrants. Investors were bullish on the low-cost, long-haul airline, taking home 4.4 million units of AAX-CX out of 51.7 million units traded throughout the week. The warrant garnered huge demand as the share price also experienced positive momentum, surging 2.5% week-onweek (w-o-w).
AAX-CX, which will expire in February 2017, tracked its underlying share price, ending 11.1% higher w-o-w as the bid price finished at RM0.050 on Friday.
In index warrants, the Hang Seng Index (HSI) alternated between positive and negative territory, starting the week in the red but eventually ended 0.5% higher at 23,400 points, on Thursday. The Hong Kong market was shut last Friday due to a typhoon.
Warrants over the HSI remained among investors’ favourites, contributing 41.2% of the total warrants turnover with RM85.7 million. Call warrant, HSI-C36, emerged as the top traded index warrant as 85.6 million units changed hands. Investors should take note that the warrant will stop trading on Wednesday.
Investors also heavily traded the longer dated HSI call, HSI-C66 (March expiry), selling back 1.8 million units out of the 42.5 million units traded on Bursa Malaysia. Warrant Name Volume traded (units) Closing Bid Price (RM) Issuer Exercise Price / Level Expiry Date Elsewhere, investors were also actively trading put warrant HSI-H63. The put warrant ended 10.2%lower at RM0.44 on 54.5 million units traded.
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.