DRB-Hicom continues to attract interest

LAST week, warrants over Malaysian counters dominated almost the entire warrant space as demand among investors spiked. Trading volume surged 71.6% from the previous week to 1.89 billion units, recording the highest weekly turnover in May.

The spotlight remained on DRB-Hicom as the share price had a yo-yo momentum, swinging up and down throughout the week. In the first two days, DRB-Hicom recorded a total loss of 3.0% before rising as much as 12.0% to a two-year high of RM1.82 on Wednesday. The sudden jump was on the back of a newswire report stating that the company plans to meet several foreign parties to discuss proposals of the stake sale in national carmaker, Proton Holdings. Earlier, DRBHicom mentioned that the search for Proton’s foreign strategic partner is expected to be completed by the first half of 2017.

DRB-Hicom’s share price spurt, however, came to a halt on Thursday, plunging 6.6%, before rebounding 2.4% to end the week at RM1.74.

Volatile movements in the underlying share spurred continued trading interest in warrants over DRB-Hicom. Two call warrants, DRBHCOM-C32 and DRBHCOM-C26, took two slots of the top five most active warrants with a total 369.9 million units traded. Throughout the week, investors net bought 19.0 million Top 5 most active warrants

units of the top traded DRBHCOM-C32, sending this warrant into the sold-out list. Investors should use caution when buying warrants that are sold-out as the bid price may be inflated by other investors due to the widening in the offer price.

Meanwhile, DRBHCOM-C26 whose bid price soared 46.7% had investors trading 141.5 million units, claiming second spot on the warrants board.

FGV-C24 also recorded remarkable trading activity, with investors buying 13.4 million units out of 118.1 million units traded. The bid price of FGV-C24 tracked its mother share closely, soaring 22.2% on the week, as its mother share, Felda Global Ventures gained 2.6%.

Elsewhere, warrants over the Hang Seng Index (HSI) remained as the most active index warrants, recording a total turnover of RM17.8 million. HSI June put, HSI-H93 continued to be heavily traded

with trading volume of 24.9 million units. At the end of the week, investors net bought 2.0 million units of HSI-H93 in total. The bid price of the warrant moved in reverse to its underlying index, tumbling as much as 23.6%. However, the HSI gained 0.1% for the week as it finished at 25,174.87 points on Friday.

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.