Glove makers remain in focus

THE Malaysian warrants market saw a dip in trading last week with total turnover coming in at RM932.2 million, down by 10.4% from RM1.04 billion a week ago due to a shorter trading week in conjunction with the Malaysia Day holiday on Sept 16. Warrants over Malaysian shares were still the major contributor to the total warrants turnover making up about 93.3% with a total value traded of RM869.6 million, followed by warrants over the Hang Seng Index (HSI) which recorded a total value traded of RM56.8 million, about 6.1% of the total warrants turnover.

Rubber glove makers still took on the centre stage last week with higher price volatility. All eyes were on glove giant Top Glove Corporation as it reported its best quarterly net profit on Thursday with RM1.29 billion for Q4 FY20 ended Aug 31, which is almost 18 times the RM74.17 million posted last year (The Edge Markets, Sept 17). Its share price, however, took a beating post earnings to tumble 7.6% to finish at RM7.79 on Thursday, before staging a minor rebound to end Friday at RM7.98, up 2.8% week on week. The volatile week also saw the share price of Supermax jumping a staggering 20% on Monday to close at RM9 before falling in the next three days to end the week still up by 1.3% at RM7.60 on Friday.

The holiday shortened week saw call warrants SUPERMX-C1I, TOPGLOV-C81 and TOPGLOV-C84 taking the top three spots of the most actively traded warrants with 346.3 million, 166.2 million and 157.4 million units traded, respectively. TOPGLOV-C81 was also the top traded warrant by value last week with a total turnover of RM90.6 million, followed by TOPGLOV-C84 with up to RM67.7 million in value traded. HARTA-C59 and SUPERMX-C1E were also among the popular warrants traded with a total volume of 112.2 million and 108.6 million units.

Glove makers aside, warrants over the HSI were also quite popular among investors especially with the underlying HSI futures swinging within a range of 24,198–24,898 last week. Call warrants HSI-C9V and HSI-C9U clocked in 84.2 million and 70.3 million units respectively while put warrant HSI-HAY saw a total of 62.6 million units changing hands. The spot month September HSI futures contract ended the week little changed at 24,456.

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.