17 May 2017
Structured Warrant Activity in May MTD
  • Last Thursday, Wilmar reported a 46% year-on-year (YoY) increase in profits for Q1 2017. Wilmar’s stock price has generated a total return of 7.1% month-to-date (MTD), putting them among the top performers of the STI Index (+2.2% MTD)
  • The most active index warrant MTD is the Hang Seng Call warrant (CGIW) which generated S$105 million in traded value for the period. The Hang Seng Index has outperformed other Asian indices in the month of May thus far with a total return of 3.0% and is amongst the top performing Asian indices year-to-date.
  • The most active stock warrant MTD is the DBS Call warrant (CBJW) which generated S$4.4 million in traded value for the period. There are more than 20 bank warrants listed on SGX that investors can use to gain exposure to the three Singapore banks.

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Wilmar reported increase in profits for Q1 2017

 

Since the release of Wilmar’s Q1 2017 results on 11 May where the company reported a 46% YoY increase, the stock has gained 9.6% from its closing price of S$3.43 on the day of the release. On a MTD basis, Wilmar generated a total return of 7.1%, which puts it among the top performers of the STI Index. SGX currently lists five structured warrants on Wilmar. The details of the five Wilmar warrants are tabled below sorted by Expiry Date.

 

Name

Stock Code

Call/Put

Expiry Date

Strike Level S$

WILMAR MBECW170703

BYTW

C

03-Jul-17

3.40

WILMAR MBEPW170703

BYUW

P

03-Jul-17

3.05

WILMAR MBECW170710

CCCW

C

10-Jul-17

3.80

WILMAR MBEPW170710

CCDW

P

10-Jul-17

3.40

WILMAR MBECW170925

CEFW

C

25-Sep-17

4.35

Source: SGX (data as of 16 May 2017)

 

The STI Index has also maintained its position as one of the top performing Asian benchmark Indices in the YTD and MTD basis, generating total returns of 13.5% and 2.2% respectively.

Total Return (SGD) YTD %

 

Total Return (SGD) MTD %

Source: Bloomberg (data as of 16 May 2017)

 

There are eight STI warrants listed on SGX. The details of the STI Warrants are tabled below sorted by expiry date. As for all structured warrants, investors who are bullish on the underlying index/stock can consider buying the call warrant and investors who are bearish can consider buying the put warrant.

 

Name

SGX Code

Call/ Put

Expiry Date

Strike Level

S$

STI 2800MBEPW170630

CDLW

P

30-Jun-17

2,800

STI 2850MBECW170630

CDJW

C

30-Jun-17

2,850

STI 2900MBEPW170630

CDMW

P

30-Jun-17

2,900

STI 3050MBECW170630

CDKW

C

30-Jun-17

3,050

STI 3050MBEPW170831

CFWW

P

31-Aug-17

3,050

STI 3250MBEPW170831

CHAW

P

31-Aug-17

3,250

STI 3300MBECW170831

CFVW

C

31-Aug-17

3,300

STI 3500MBECW170831

CGZW

C

31-Aug-17

3,500

Source: SGX (data as of 16 May 2017)

 

Another constituent of the STI, Singtel, is expected to reporting their 1Q 2017 earnings on Thursday before market opens. In the last quarter, Singtel was mildly affected by adverse currency movements. Singapore’s largest telecommunications operator said in February that third-quarter net profit fell 1.7%. SGX currently lists four Singtel warrants. The details of the four Singtel stock Warrants are tabled below sorted by expiry date.

 

Name

Stock Code

Call/ Put

Expiry Date

Strike Level S$

SINGTELMBEPW170601

BWZW

P

01-Jun-17

4.10

SINGTELMBECW170602

BXNW

C

02-Jun-17

4.35

SINGTELMBECW171002

CBAW

C

02-Oct-17

3.90

SINGTELMBEPW171002

CBBW

P

02-Oct-17

3.60

Source: SGX (data as of 16 May 2017)

 

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Most Active Structured Warrants in May MTD

 

The five most active Index Warrants for May MTD were of the Hang Seng Index. The Hang Seng Index is among the top performing Asian benchmark in the MTD in SGD terms as shown in the chart above, generating a total return of 3.0%. This compares to the 2.2% and 2.0% of the STI and Nikkei 225 Index. The most active HSI warrant in the MTD is CGIW which generated S$105 million in traded value for the period.

 

The details of the five most active Index Warrants in May month to date are listed in the table below.

 

Name

Stock Code

Call/Put

Expiry Date

Strike Level

MTD Trade Value (S$)

HSI 25200 MB ECW170629

CGIW

C

29-Jun-17

25,200

105,278,724

HSI 24600 MB ECW170529

CFFW

C

29-May-17

24,600

66,323,199

HSI 25400 MB ECW170529

CFRW

C

29-May-17

25,400

50,792,326

HSI 24000 MB EPW170529

CFTW

P

29-May-17

24,000

46,726,599

HSI 24400 MB EPW170728

CGSW

P

28-Jul-17

24,400

46,241,834

Total

 

 

 

 

315,362,681

Source: SGX (data as of 16 May 2017)

 

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Most Active Stock Warrants in May MTD

 

The five most active Stock Warrants for May MTD were Call Warrants on Singapore’s banking stocks with the most active warrant being the DBS Call warrant (CBJW). It generated a trade value of S$4.4 milliion for the period. The table below details the actively traded Bank warrants in the MTD, sorted by the underlying stock, then by the MTD trade value.

 

Name

Stock Code

Call/Put

Expiry Date

Strike Level S$

MTD Trade Value (S$)

DBS MB ECW170710

CBJW

C

10-Jul-17

19.50

4,412,412

DBS MB ECW171016

CGQW

C

16-Oct-17

22.00

1,829,017

DBS MB EPW171016

CGXW

P

16-Oct-17

19.50

519,388

DBS MB EPW171030

CBOW

P

30-Oct-17

16.80

240,906

DBS MB ECW171101

CBMW

C

1-Nov-17

20.00

135,198

DBS MB EPW171002

CBNW

P

2-Oct-17

18.00

53,371

DBS MB ECW170605

CAAW

C

5-Jun-17

16.00

36,350

DBS MB ECW170703

CBDW

C

3-Jul-17

18.00

23,720

DBS MB EPW170703

CBEW

P

3-Jul-17

16.50

2,306

DBS MB EPW170612

CAJW

P

12-Jun-17

15.50

48

Total

 

 

 

 

7,252,716

Source: SGX (data as of 16 May 2017)

 

Click on the link to read a recent Warrants on Wednesday Market Update about Singapore’s Bank Warrants.

 

http://www.sgx.com/wps/wcm/connect/5adc91d5-49be-4a34-b4c8-421205b687e7/1/SGX%2BSW%2BWeb%2BBanner_300x250.jpg?MOD=AJPERES&CACHEID=5adc91d5-49be-4a34-b4c8-421205b687e7/1Specified Investment Products

Structured warrants are an example of Specified Investment Products (SIPs). The MAS has introduced measures for intermediaries to safeguard the interests of individual investors investing in SIPs, which are products with features that might be more complex in nature. Investors now have the opportunity to assess their qualifications to trade SIP or enhance their product knowledge through the SGX online portal available here.

 

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Structured Warrants Education Portal

 

Structured Warrants have a growing presence in Asia as an alternative for investors to participate in the performance of an underlying asset at a fraction of its price, in both bullish and bearish markets. Click here for educational videos covering the basics of trading structured warrants.

 

Using Warrants in Your Portfolio

Trading Warrants on SGX

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