Investors zoom in on DRB-Hicom, Karex and MRCB
LAST week, warrants over Malaysian counters dominated the market, contributing more than 90% of the total traded last week. Trading volume was 29% lower from the previous week, recording a turnover of RM141 million for the week ended June 2.
Investors traded a total of 382 million warrants over DRB-Hicom, Karex and MRCB, as the underlyings were volatile last week.
Among the 12 warrants over DRB-Hicom listed on Bursa Malaysia, DRBHCOM-C33 and DRBHCOM-C26 emerged as investors’ favourites last week. The stock was up 4.2% to RM1.72 for the week. DRBHCOM-C33 which was up 12% to RM0.140, saw investors chasing the rally via 76.9 million warrants. At the same time, DRBHCOM-C26 closed 6.3% higher to RM0.17, and had demand for 52 million warrants.
Elsewhere, Karex which lost 18.9% week-on-week to RM1.72 on the back of disappointing third quarter FY17 results, led to high trading activity in call warrant Karex-CW. Investors were seen buying 3.7 million units Karex-CW on Wednesday, and 20.7 million units on Thursday, as the underlying fell further to RM1.67. Karex-CW lost 70.5% last week to close at RM0.025.
Lastly, Malaysia Resources Corporation Bhd (MRCB) snapped its two-week losing streak and gained 2.9% to RM1.40. Two actively traded call warrants over MRCB, MRCB-C15 and MRCB-C14, saw 55.2 million and 15.2 million changing hands respectively.
However, investors should note that MRCB-C14 is sold out. As such, the market maker of the warrant is no longer able to provide an active offer quote in the warrant and the current market bid price may be inflated by speculators.
Those who are still keen to gain a leveraged exposure to MRCB may consider MRCB-C16 which was listed last Wednesday. As of last Friday, MRCB-C16 offers an effective gearing of 3.3x. Meaning, the warrant tends to move by about 3.3% for every 1% move in its underlying.
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.