HSI takes the crown again
GLOBAL equity markets had one of their worst performances in 2018 last week, as trade war tensions between the world’s two largest economies continued to escalate.
On June 15, US President Donald Trump’s administration announced that Chinese goods worth US$36 billion (RM143.64 billion) will be subject to 25% tariffs effective July 6. China swiftly responded, saying that it will impose tariffs on US goods on the “same scale and same strength” (CNBC, June 15). The US later threatened to impose tariffs on an additional US$200 billion worth of Chinese goods, unless Beijing ceases its “unfair practices” (Economic Times, June 19).
The warrants market saw RM594.2 million traded last week, up 39.7% from the prior week. Warrants over the Hang Seng Index (HSI) and the FBM KLCI dominated, comprising 82.3% of total turnover.
The HSI tumbled 2.8% to 29,468.2 points last Tuesday, breaching the 30,000 level upon reopening after Hong Kong’s public holiday on Monday. It rebounded 0.8% on Wednesday, fell 1.4% on Thursday and gained 0.2% on Friday to end at 29,338.7 points, down 3.2% week on week.
Put warrant HSI-H4B topped the charts with RM76.1 million traded, with investors as net sellers. Investors took profit on this warrant on Tuesday when its bid price gained a whopping 37.5%.
Call warrant HSI-C3H also saw a surge in trading last week. Bargain hunters took home 13.9 million units of the 179.2 million units traded.
Local benchmark FBM KLCI could not escape further declines last week. It closed in negative territory for the first four days of the week, losing a cumulative 3.9% as Thursday marked its ninth consecutive day of decline. It got a respite from the selling pressure on Friday, closing 0.11% higher at 1,694.2 points, down 3.8% week on week. Among all warrants over the FBM KLCI, put warrants FBMKLCI-H4P and FBMKLCIH4R were tops, with RM13.1 million and RM6.9 million traded respectively.
For single stocks, electronic government services provider My E.G. Services remained as investors’ favourite as the share price gained 3.6% week on week to close at RM1.00 on Friday, despite weakness in the broader market. Call warrant MYEGC40 was the most popular with 42.1 million units traded.
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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.