Hang Seng Index warrants volume surges in sluggish market
ASIAN equity markets extended their weak performances last week as the US-China trade dispute continued to escalate, with the Trump administration seeking further restrictions on Chinese involvement in the US economy. This time around, US President Donald Trump plans to block firms with at least 25% Chinese ownership from buying US companies with “industrially significant technology” (Reuters, June 25).
Additionally, on Sunday (June 24), China’s central bank announced a 50 basis point cut in the reserve ratio requirement to 15.5% for large commercial banks. The cut will take effect from Thursday, releasing 700 billion yuan to accelerate the pace of debtfor-equity swaps and to free up funding for small firms.
Major Asian indices reacted negatively to the news last Monday with the Shanghai Composite Index falling 1.1% to 2,859.3 points, Tokyo’s Nikkei 225 declining 0.8% to 22,338.2 points and Hong Kong’s Hang Seng Index (HSI) dropping 1.3% to 28,961.4 points.
The HSI fell for three consecutive days, losing 1.8% to a low of 28,356.3 points on Wednesday. However, the index rebounded and surged a total of 2.1% over Thursday and Friday, ending the week down 1.3%.
Trading interest in HSI warrants grew a whopping 44.7% to RM632.7 million in turnover last week. HSI call warrants recorded the highest trading volume at 857.2 million units, with the HSI-C3I being the most popular call warrant at 277.4 million units traded as it fell 13.9% week on week to close at RM0.495.
Meanwhile, put warrant HSIH4B was the top traded warrant with 356.6 million units. At the end of the week, investors net sold 2.1 million units as the warrant rose 12.2% week on week.
The FBM KLCI tumbled for four consecutive days from Monday, falling 1.7% in total, but rebounded on Friday, soaring 1.6% to finish at 1,691.5 points. Put warrant FBMKLCI-H4P was the most active warrant over the FBM KLCI, with 66.9 million units traded. The put warrant moved in the opposite direction to the index, closing 13.2% lower at RM0.295 on Friday.
Elsewhere, SAPNRG-C67 was the most popular single stock warrant, with trading volume coming in at 60.3 million units, with 766.6 million units net bought by investors. The bid price of SAPNRG-C67 fell 5.9% for the
TOP 5 WARRANTS BY TRADING VOLUME:
Warrant Name HSI-H4B HSI-C3I HSI-H4I HSI-C3F HSI-C3H Volume (mil. units) 356.6 277.4 240.2 147.5 133.5 Issuer
Macquarie Macquarie Macquarie Macquarie Macquarie
week as Sapura Energy shares were down 0.8%. If you have any questions or need further assistance, contact us via our hotline at 03-2059 8840 or email us at info@malaysiawarrants. com.my.
To view the full list of structured warrants available on Bursa Malaysia, visit malaysiawarrants.com.my. Provided for Malaysian residents’ Exercise Price (RM) 28,800 30,000 27,800 31,000 31,400
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.