Lower turnover for the week, HSI futures back in focus

THE overall warrants market turnover came in at RM593.0 million last week, dropping by about 26.8% versus the previous week as stocks over glove makers took a breather. Warrants over Malaysian shares still dominated the total turnover, making up about 85.2% of the total at RM505.5 million, followed by warrants over indices at RM41.8 million (7.0%) and warrants over foreign underlyings, which made up the balance.

Glove makers, which were previously actively traded, saw subdued trading volume with news breaking out on Tuesday that the Malaysian government has ordered staggered temporary closures of Top Glove’s factories amid an escalating

Covid-19 outbreak among its workforce. Its share price extended losses for a sixth straight week to close at RM6.99 on Friday, down 4.1% for the week despite news that its dividend yield is estimated to be more than 6% for FY21.

Meanwhile, SUPERMX was 5.5% higher for the week at RM8.52, snapping a two-week losing streak. Call warrant SUPERMX-C1I topped the list as the most actively traded warrant last week with up to 245.4 million units traded. It is also the top traded warrant by value with RM27.0 million in turnover.

TOPGLOV-C84 made the fifth spot with 45.3 million units traded despite the news.

On the foreign front, warrants over the Hang Seng Index (HSI) were back in focus as the underlying HSI futures saw another buoyant week after surging for a sixth consecutive day on Friday to finish at 26,921.0 (+1.8%), extending its weekly win streak to four weeks in a row and closing at its highest level since February 2020.

The gains saw fresh interest particularly in the HSI put warrants with HSI-HDI and HSI-HDJ making the number two and three spots in the top active list with up to 121.8 million and 49.5 million units traded, respectively.

Also on the foreign front, call warrant XIAOMI-C4 made it to the fourth spot last week with a total 47.2 million units traded following a volatile week for the stock as it ended 2.0% higher for the week at HK$26.05 after dropping from a weekly high of HK$28.40.

To view the full list of structured warrants available on Bursa Malaysia,

visit malaysiawarrants.com.my. information only. This commentary

has not been reviewed by the Securities Commission Malaysia. 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.