Market still strong despite slower momentum
FOLLOWING the Malaysian equity market’s strong start to the New Year, trading lost some momentum last week, with the FBM KLCI adding 0.78% on Monday, bleeding 0.83% from Tuesday to Thursday, and thereafter ending the week at 1,822.67 points, up 0.26% week onweek. The structured warrants market slowed slightly, with the total turnover for the week coming in at RM495.4 million, down 1.4% and averaging RM99.1 million per day.
The share price of DRB-Hicom continued to rally as it gained 6.7% week on week to close at RM2.54. The share price gained in four out of the five trading days last week, boosted by news that DRB-Hicom’s associate Honda Malaysia sees vehicle sales rising 19% year on year, along with investors’ confidence that the company’s subsidiary, Proton Holdings, can finally turn around in 2018 with Chinese strategic partner Zhejiang Geely Holding on board.
Following this, warrants over DRB-Hicom constituted about 8.5% of warrants traded for the week. The call warrant DRBHCOM-C37 was the most active warrant last week, with 137.8 million units traded.
Aside from DRB-Hicom, the share price of Felda Global Ventures (FGV) also made waves in the Malaysian market as it saw a 13.2% increase week on week to close at RM2.15 last Friday. FGV’s share price gained for four out of the five trading days last week as well, on the back of the government’s decision to suspend crude palm oil export tax for three months, which is expected to boost the company’s exports significantly.
The call warrant FGV-40 emerged as the top traded warrant over FGV in terms of volume traded, with 133.9 million units traded. FGV-40 has an effective gearing of 4.2 times, which means, other factors held constant, it tends to move about 4.2% for every 1% move in FGV’s share price.
The first batch of structured warrants issued over Malaysian stocks for the year was listed last Friday, Jan 12. On the day of its debut, FGV-C42 saw a respectable 36.7 million units traded.
Another notable new listing is UCHITEC-CA, which is the first and currently the only warrant listed over Uchi Technologies. The company is mainly involved in the design and assembly of electrical components onto printed circuit boards, research, development and manufacturing of touch screen advance display.
The latest issuance also saw new warrants listed over Sime Darby Plantation (SDPL) and Sime Darby Property (SDPR). SDPL and SDPR are entities listed in November last
TOP 5 WARRANTS BY VOLUME
Warrant Name DRBHCOM-C37 FGV-C40 FGV-C31 SUPERMX-C27 SAPNRG-C51 Volume (mil.) 137.8 133.9 125.5 117.9 96.7 Issuer
year following the corporate action by Sime Darby to allow the individual businesses to measure against similar peers. With these new listings, investors will have three warrants each on SDPL and SDPR to choose from.
If you have any questions or need further assistance, please do not hesitate to contact us via our hotline at 03-2059 8840 or email us at infomalaysiawarrants.com.my.
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.