Supermax in focus as share price plunges
PERFORMANCE of Supermax Corporation shares appeared lacklustre in the last week of November, trading below the RM2 mark. It did not have a good start, dropping more than 14% in the opening session on Monday (Nov 27) following negative news on the conviction of its managing director, Stanley Thai, for insider trading.
The news broke on Friday (Nov 24), when the Securities Commission announced that Thai was found guilty of insider trading regarding the communication of non-public information on APL Industries between Oct 25 and 29, 2007. According to the announcement, Thai was fined RM5 million and sentenced to a five-year jail term.
Last Monday, the glove maker’s share price recorded its biggest drop in November, tumbling 5.3% to close at RM1.95. The share price continued heading south throughout the week, losing a total of 8.2% week on week as it finished at RM1.89 last Friday.
Weakness in Supermax’s share price attracted investors to actively trade a call warrant, SUPERMX-C29, which emerged as the top traded warrant with 88.7 million units
TOP 5 WARRANTS BY VOLUME
traded. Bargain hunters were seen taking a chance with the lower price in Supermax, taking home 15.7 million units of SUPERMXC29, which bid price plunged 53.3% to RM0.035 for the week.
Call warrants over Sime Darby, that is, SIME-C14 and SIME-C15, were also heavily traded among investors, finishing in the top five most active warrants despite having only one day to trade last week. Similar to their mother share, the warrants resumed trading last Thursday (Nov 30) after having been suspended since last Monday (Nov 27). SIME-C14 saw investors trading more than 51 million units while SIME-C15 had investors Macquarie CIMB CIMB Kenanga Kenanga
trading close to 31 million units on Thursday alone.
The suspension of Sime Darby was due to the demerger of Sime Darby Plantation and Sime Darby Properties into separate entities from the holding company.
According to their press statement issued early this year, Sime Darby clarified that this demerger was to enable each business to pursue its distinct aspirations with greater focus and agility. It was reported that they also wanted to take advantage of potential growth opportunities to maximise value for all shareholders.
Elsewhere, the Hang Seng Index (HSI) traded in negative territory throughout last week, falling 2.7% as it finished at 29,074.24 points on Friday.
Investors showed interest in HSI puts, especially HSI-H2Q, which saw more than 8.3 million units traded. The put warrant, which moves in an inverse direction from the underlying index, surged 20.8% to close at RM0.450 on Thursday.
There was no trading last Friday (Dec 1) for all warrants listed on Bursa Malaysia due to the public holiday for Maulidur Rasul.
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.