Armada-C22 steals the limelight with 33% gain

LAST week, Bumi Armada gained as much as 5.3% while the FBM KLCI climbed 0.1% to 1,741.72. Armada-C22 led the charge with a total 52.7 million units changing hands in the week ended April 7. The warrant closed at RM0.06, gaining 33.3% weekon-week, following the rally in its underlying share price.

Investors were seen selling back the warrant as the underlying made gains in the middle of the week, but turned net buyers on Thursday as the underlying fell 3%. Investors took home 5.6 million units on Friday, just before the closing bell rang.

In contrast, DRB-Hicom’s share price suffered a 2.9% fall to finish the week at RM1.36. Among the warrants, DRBHCOM-C32 was investors’ favourite, net buying 13.7 million out of the 41.7 million units last week, as the warrant lost 11.8% to RM0.075.

Demand remained strong for call warrant MRCB-C13 as it gained 16% last week. However, investors should note that this warrant has sold out. This may cause the current market bid price to be inflated by speculators as the market-maker is no longer able to provide an active bid and offer price in the warrant. Investors who are still bullish and keen to gain a leverage exposure to MRCB may consider the newly listed MRCB-C14 by MacQuarie.

In index warrants, the Hang Seng Index (HSI) warrants remained an active contributor to the overall turnover, contributing 23.2% of the total RM137 million worth of warrants traded on Bursa Malaysia. As of last Friday, call warrant HSI-C72 was the top traded warrant in the market, with 56.9 million units changing hands. Warrant investors net sold back 2.1 millionunits last week as the warrant lost 18.2% to finish at RM0.135.

For more information, 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 erformance. You should make your own assessment and seek professional advice.