Supermax springs to live, tops active list
THE share price of Supermax Corp Bhd took an interesting turn after the Deepavali break on Wednesday. Having remained relatively quiet over the past few months, Supermax’s share price surged 10.4% on Thursday to close at RM2.02, above the RM2.00 psychological barrier.
Although no particular news was announced by the rubber glove maker, the stock prices of its peers such as Top Glove and Kossan Rubber have experienced similar increases in recent weeks.
Warrants over Supermax sprung to life, contributing approximately 14.0% of the total warrants turnover for the week. Among the lot, SUPERMX-C29 was one of the top traded warrants, with it tracking the underlying share movement to gain almost 89% on Thursday to close at RM0.085. This warrant has one of the highest liquidities among all warrants over Supermax, which means this warrant has more volume provided on the bid and offer by the market maker.
The liquidity of a warrant is more important than its actual volume traded, as a warrant with high liquidity allows investors to buy and sell with ease without directly affecting the warrant’s price.
TOP 5 WARRANTS BY VOLUME
Warrant Expiry Date Name SUPERMX-C27 SUPERMX-C29 CIMB-C27 CIMB-C24 Volume
(mil.) 47.9 28.4 17.6 15.9 Issuer
In foreign underlying, warrants over the volatile Hang Seng Index (HSI) were active as the HSI continued its roller-coaster momentum.
The index started the week strongly, gaining 0.8% for the first three days of the week. It then took a plunge on Thursday after China released its economic data on lower gross domestic product growth for the third quarter of 2017, ending the day 552 points or 1.9% lower at 28,159.09.
Call warrant HSI-C1P was the most active warrant for the week as investors took home more than 1.3 million units on Thursday, taking advantage of the 16.3% decline in the warrant price.
Call warrants track the underlying’s price movement, gaining as the underlying rises.
Conversely, put warrant Exercise
Price (RM) 2.00 1.90 7.70 7.00
HSI-H2Q enjoyed a run-up on Thursday, ending the day 23.5% higher at RM0.500.
As seen, put warrants move in an inverse direction from the underlying, gaining in value as the underlying decreases.
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.