The Sun (Malaysia)

FBM KLCI puts the most active amid falling market

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LAST week, all eyes were on the Federal Reserve Open Market Committee meeting, as investors awaited its decision on US interest rates. While the US market surged after the announceme­nt that there was no change to short-term interest rates, Asian markets were mostly lower the next day.

Bursa Malaysia’s FBM KLCI was one of the indices that traded and ended in negative territory after the announceme­nt, tumbling 1.2% to extend its four-day losing streak. The FBM KLCI closed at 1,665.71 points on Friday, down 45.22 points or 2.6% week-on-week.

With the underlying index on a downtrend, FBM KLCI put warrants were the most actively traded, contributi­ng more than 60% to overall warrants market turnover. Notably, FBM KLCI-H3 registered a turnover of 16.6 million, out of the 258.1 million market turnover for the week. Investors who accumulate­d FBM KLCI-H3 prior to last week were rewarded by significan­t gains, as the put warrant jumped 12.7% at RM0.755 for the week.

Elsewhere, stocks that suffered saw heavy demand for their call warrants. Public Bank was one example, after losing 3.0% week-on-week to close at RM18.08 on Friday. Bargain hunters traded 42.8 million units of call warrant PB BANK-C5, causing the warrant to be sold out.

The other call warrant that was actively traded and saw strong investor demand was Edgenta-CC, over UEM Edgenta. The warrant saw a total of 90.1 million units change hands, and has investors holding 13.0 million warrants as of Oct 30. The bid price of Edgenta-CC skidded 20.0% versus UEM

Edgenta’s 3.3% drop to RM3.33.

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