Hengyuan and FGV take centre stage

LAST week, warrants over Malaysian counters were actively traded, contributing about 94% of total warrants traded. Warrant trading activity recorded a turnover of RM462.2 million for the week ended Jan 19, 7% lower than the previous week’s turnover. Warrants over Hengyuan Refining and Felda Global Ventures (FGV) were very popular last week, with investors trading a total of 197.3 million units as their underlying shares were very volatile.

The share price of Hengyuan had a rocky week as it fell below the RM15 mark. From Monday to Thursday last week, Hengyuan shares recorded losses for four consecutive days, plunging more than a total of 32%. According to a news report on Jan 18, the share price declined as investors were quick to take profits. However, ahead of the weekend Hengyuan shares surprised the market as it reversed some of its losses, gaining a whopping 19.2% to close at RM14.30 on Friday.

Hengyuan-CO, which was listed last Friday, made its debut by emerging the top traded warrant for the week, with 142.3 million units traded. Another newly listed warrant, Hengyuan-CN, which has an exercise price of RM24, the highest among all warrants listed over Hengyuan, also garnered huge demand among investors as more than

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50.2 million units changed hands. In less than a week, Hengyuan-CN was already sold out as investors took home 20.0 million units of this warrant.

Investors should keep in mind that the market maker is no longer able to provide an active offer for the sold out warrant; hence, the market bid price may be inflated by speculators.

FGV’s share price had a lacklustre performance at the beginning of last week after the share price recorded more than 9% gain from Wednesday to Friday in the previous week (the week ended Jan 12). For the first three days of last week (ended Jan 19), FGV’s share price tumbled 8.1% and rebounded 1% on Thursday, before falling 2.5% to close at RM1.95 on Friday (Jan 19).

FGV-C42 was one of the popular warrants over FGV, recording a total trading volume of 40.0 million units. At the end of last week, investors sold back a total of 4.6 million units of this warrant; its bid price fell 24.4% to RM0.155.

If you have any questions or need further assistance, do not hesitate to contact us via our hotline at 03-2059 8840 or email us at info malaysiawarrants.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.