The Sun (Malaysia)

FBM KLCI puts the most active amid falling market


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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