Spotlight on Supermax and Sapura Energy
THE shares of Supermax Corporation have been under pressure since the announcement of the conviction of Supermax’s managing director Stanley Thai for insider trading. The news broke on a Friday, Nov 24, causing the share price to fall 5.3% the following Monday. By the end of the week, it was down 8.2% week on week at RM1.89, on Thursday, Nov 30. The share price did not recover last week, closing at RM1.85 on Friday, down a further 2.1% for the week.
The continuing weakness in Supermax’s share price attracted investors to trade the call warrant SUPERMX-C29, which emerged as the top traded warrant by volume for the week, with 59.1 million units. The warrant bid price correspondingly lost 28.6% week on week, closing at RM0.025 last Friday. SUPERMX-C29 will expire on Jan 30, 2018. For a longer exposure to Supermax, investors might want to consider SUPERMXC31, which expires in June 2018.
Towards the end of last week, Sapura Energy shares saw a spike in trading activity after the release of its financial results for its third quarter. The company reported a net loss of RM274.4 million, a steep decline from a net profit of RM158.1 million in the same quarter last year. The loss was mainly attributed to lower revenue from engineering, construction and drilling business segments.
The results were released on Thursday, Dec 7 after which the share price plunged in the afternoon session, falling 20.3% to close at RM0.965, and a further 14% to close at RM0.83 on Friday, leading to a whopping 33.6% weekly fall.
The call warrant SAPNRG-C54 emerged as the second most popular warrant by volume last week, with 45.6 million units traded. This call warrant has an effective gearing of 4.4 times as at last Friday, which means (other factors held constant), it tends to move about 4.4% for every 1% move in its mother share price. The warrant price was down 72.7% for the week.
Elsewhere, the Hang Seng Index (HSI) had a volatile week. On Wednesday, it saw a 2.1% decline to 28,224.8 points as Hong Kong stocks posted their biggest single-day decline in over a year. The HSI recovered slightly over the next two days, but still closed the week lower at 28,639.85 points, down 1.5%. The
TOP 5 WARRANTS BY VOLUME
Warrant Volume Name (mil.) SUPERMX-C29 59.1 SAPNRG-C54 45.6 SAPNRG-C55 40.7 SIME-C15 38.8 HENGYUAN-CH 32.1 Issuer
HSI-C1P was the most popular HSI warrant last week, with 28.2 million units traded. The call warrant, which tracks the underlying HSI futures, fell 28.6% for the week.
To view the full list of structured warrants available on Bursa Malaysia, kindly 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.