Traders flock to FGV war­rants as stock dives 12.3%

The Sun (Malaysia) - - SUNBIZ -

LAST week, plan­ta­tion gi­ant Felda Global Ven­tures Bhd (FGV) ex­pe­ri­enced a lack­lus­tre per­for­mance. The share price kicked off the week in the red, plung­ing 8.6% as it closed at RM2.01 on Mon­day. It con­tin­ued its down­ward mo­men­tum by adding 9.6% of losses for two days, Tues­day and Wed­nes­day, be­fore re­bound­ing 6.6% to RM1.94 on Thurs­day. The share price, how­ever, could not sus­tain its pos­i­tive mo­men­tum, end­ing lower at RM1.93, a loss of 0.5% on Fri­day. For the week, FGV’s share price tum­bled 12.3%.

War­rants over FGV grabbed lime­light in the war­rant scene, tak­ing over the pop­u­lar Hang Seng In­dex (HSI) war­rants in the pre­vi­ous week. War­rants over FGV con­trib­uted about 15.8% of the to­tal week’s war­rant turnover. Among the lot, FGV-C16 and FGVC19 stood at the first and sec­ond rank in the top 5 most ac­tive war­rants, with both record­ing to­tal trad­ing vol­ume of 151.1 mil­lion units and 91.4 mil­lion units re­spec­tively. FGV-C19 which had in­vestors buying 6.8 mil­lion units tracked its un­der­ly­ing closely, fall­ing 41.7% as its bid price closed at RM0.070 to

Top 5 traded war­rants end the week.

Call war­rant AAX-CX, over AirAsia X, re­mained as in­vestors’ favourite for three weeks in a row. Out of the war­rants traded through­out the week, in­vestors brought home 90.6 mil­lion units.

Over in the for­eign in­dex trades, the HSI was on a bear­ish trend, fall­ing 1.1% week on week as the in­dex fin­ished at 22,642.62 points on Fri­day. On Mon­day, the volatile in­dex inched down 0.1% be­fore ris­ing slightly above the 23,000 level on Tues­day at 23,147.07 points (+0.9%). The in­dex, how­ever, plunged 2.0% for the next two days be­fore re­bound­ing to close in the green on Fri­day.

Both the HSI calls and puts were ac­tively traded by in­vestors last week, reg­is­ter­ing 42.1% of over­all war­rants turnover. The call war­rant, HSI-C48, which will ex­pire in De­cem­ber, had in­vestors buying 8.4 mil­lion units out of 83.6 mil­lion units traded. Among the HSI call war­rants De­cem­ber ex­piry, HSI-C48 of­fers the high­est ef­fec­tive gear­ing of 13.6x.

This means that, if other fac­tors held con­stant, HSI-C48 tends to move about 13.6% for ev­ery 1% move in the HSI fu­tures.

Else­where, in­vestors also ac­tively traded the HSI put, HSI-H63. whose ex­piry will be in Jan­uary 2017. This war­rant gained 5.8% and in­vestors traded 61.0 mil­lion units.

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

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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