Warrants over Malaysian counters dominate
DEMAND for warrants over Malaysian counters remained robust, contributing 80% of the warrant market turnover in the week ended March 24. The most popular underlying was none other than Felda Global Ventures (FGV), which kickstarted the week with a 9.4% jump last Monday and consequently triggered buying interest in FGV call warrants.
FGV-C24 was one of the most actively traded warrants over the FGV, with RM10.2 million worth of warrants traded last week. Investors took home 2.3 million units of FGV-C24 as the warrant jumped 28.6% to RM0.180 last Monday. The warrant subsequently drifted lower to RM0.160 following a pull-back in FGV’s share price, still, finishing the week 14.3% higher. Other FGV warrants that were actively traded were FGV-C16 and FGVC23, which recorded a turnover of RM10.2 million and RM8.4 million respectively.
In the same week, warrants over Malaysian Resources Corporation (MRCB), particularly MRCB-C13, attracted huge trading interest on the back of the volatile underlying share price. The warrant fell 6.7% on Monday to RM0.07 but rebounded to end the week 26.7% higher to RM0.095 while the underlying gained 5.9%. The warrant was fully sold-out as of last Friday, after investors took home the last 2.9 million units held by the issuer.
Warrant investors should note that the market maker of a warrant that is sold-out will no longer be able to provide an active offer and hence the market bid prices may be inflated by speculators.
In index warrants, HSI-H81 emerged as the top index warrant traded last week with RM8.1 million recorded in turnover. Investors were seen selling back 869,000 units of the warrant as it dropped 7.8% while the underlying futures gained 0.3%. HSI put warrants move in an inverse direction as the underlying futures, falling in value as the underlying futures rise, and vice versa.
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.