SP500 ac­tively traded, Hang Seng In­dex’s los­ing run con­tin­ues

The Sun (Malaysia) - - SUNBIZ -

POS­I­TIVE US data point­ing to­wards a stronger econ­omy is giv­ing the Fed­eral Re­serve more ev­i­dence to sup­port an in­ter­est rate in­crease in De­cem­ber. This, cou­pled with an ex­pec­ta­tion for the in­com­ing Trump ad­min­is­tra­tion to in­crease fis­cal spend­ing, sent ma­jor US indices surg­ing to record highs last week. The Dow Jones hit an all-time high of 18,923.06 last Tues­day while the Nas­daq closed at 5,333.973 on Thurs­day. The S&P 500 in­dex was seen flirt­ing with its record high of 2,190.15, clos­ing 10.2 points higher at 2,187.12, last Thurs­day.

De­mand for S&P 500 war­rants climbed in the past two weeks as in­vestors traded the US mar­ket move­ments in the Malaysian time-zone. Last Fri­day, bar­gain hunters were seen tak­ing home 3.0 mil­lion units of put war­rant SP500-H1 as the war­rant dipped fur­ther, los­ing 9.1% to RM0.100 at Fri­day’s close.

As the SP500 war­rants are de­nom­i­nated in ring­git, an ap­pre­ci­at­ing dol­lar/ring­git ex­change rate would re­sult in an in­crease in the value of SP500 war­rants, all other things be­ing equal. Vice-versa, a weak­en­ing US dol­lar would re­sult in a drop in the value of the SP500 war­rants.

In the re­gion, the Hang Seng In­dex con­tin­ued to slide last week, ex­tend­ing its los­ing streak to four weeks, as it dropped a fur­ther 0.8% to close at 22,344.21. War­rants over the HSI were ac­tively traded, tak­ing three out of the top 5 most ac­tively traded war­rants spots last week.

Call war­rant HSI-C54 had 108.3 mil­lion units chang­ing hands, emerg­ing as the most ac­tively traded war­rant for the week. In­vestors net bought 6.4 mil­lion units of the war­rant as it lost 32.3%.

In­vestors were also net buy­ers of put war­rant HSI-H57, tak­ing home 1.4 mil­lion units out of the 70.5 mil­lion units traded.

Else­where, 14.3 mil­lion units of put war­rant FBMKLCI-H97 were traded last week as the un­der­ly­ing in­dex closed lower for the third con­sec­u­tive week, los­ing 0.6%.

For more in­for­ma­tion on in­dex war­rants, visit https://www.malaysi­awar­rants.com. my/in­dexsw.

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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