KLCI call, put warrants actively traded as index futures track Asian share losses
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KLCI call, put warrants actively traded as index futures track Asian share losses
KLCI call, put warrants actively traded as index futures track Asian share losses
By Chester Tay / theedgemarkets.com | September 7, 2015 : 1:56 PM MYTKUALA LUMPUR (Sept 7): FBM KLCI-linked call warrants rose as the Malaysian share index pared losses.
At 12:30pm, call warrant FBMKLCI-C12 jumped 4.5 sen or 30% to settle at its highest so far today at 19.5 sen. The most active entity on Bursa Malaysia saw some 72 million units done.
The KLCI fell 8.73 points or 0.5% to settle at 1,580.43. The index had earlier fallen to its lowest so far today at 1,567.91.
Index-linked call warrant movements correlate with the stock barometer, while put warrants have an inverse correlation.
Put warrant FBMKLCI-HK fell 5.5 sen or 12% to 40.5 sen. The fourth most-active entity saw some 32 million units transacted.
Although the KLCI pared losses, it is worth noting that index futures were traded at a discount to the spot market, after erasing earlier gains today.
KLCI futures for September and October 2015 settled flat at 1,560 and 1541.50 points respectively, at the 12:45pm afternoon market break.
KLCI futures had tracked Asian share losses. Japan's Nikkei 225 fell 0.02%, while Hong Kong's Hang Seng was 0.32% lower.
Reuters reported Asian stocks weakened on Monday, taking early cues from Wall Street's slide, after the August jobs report failed to give a clear view on the Federal Reserve's interest rate hike.
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