Spotlight turns to warrants over AirAsia

LAST week’s spotlight fell on Malaysian low-cost airline, AirAsia, which broke above the RM3 price level for the first time in 14 months with a 10% price surge to close at RM3.14 on Friday. The stock far outperformed the KLCI’s 0.3% fall for the week.

The spike in AirAsia’s share price in turn attracted trading interest in warrants over AirAsia. AIRASIA-C45 and AIRASIAC46 took the top spots on the warrant board, recording total trading volume of 54.7 million units and 46.2 million units respectively. Investors eventually took home 1.4 million units of AIRASIA-C45, whose bid price gained a whopping 34.6% to close at RM0.175 week-on-week (w-ow). Others sold back 8.4 million units of AIRASIA-C46, which jumped 30.8% to RM0.255 w-o-w.

Other than AirAsia warrants, UEM Sunrise warrant, UEMS-C32, was among the most active warrants for the week, exchanging hands for 48.9 million units. UEMS-C32’s bid price closed at RM0.030, while its underlying share price, UEM Sunrise, rebounded 1.6% to RM1.27 on Friday. UEMS-C32 has an effective gearing of 6.3x, meaning, this warrant tends to move approximately 6.3% for every 1% move in UEM Sunrise, with other factors held constant.

Lastly, Hang Seng Index (HSI) warrants which contributed 22.3% of the total warrant turnover saw mixed sentiments. Call warrant, HSI-C72, which was the most active HSI warrant had investors net buying 5.9 million units while the most active put warrant, HSI-H79, saw investors cash in on a total 11.2 million units as HSI April futures fell 1.1% w-o-w to finish at 24,131 points on Friday.

For more information on index warrants, visit https://www.malaysiawarrants.com. my/indexsw.

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.