KUALA LUMPUR: Hong Kong’s Hang Seng Index surge of 3.6% on Wednesday had a spillover effect on the call warrants issued over the index at Bursa Malaysia.
The call or buy and put or sell warrants were among the top gainers and also on the top losers lists on Bursa Malaysia. The strong interest in the call warrants were due to expectations that the index could trend higher after the surge on Wednesday.
Reuters reported Chinese funds were snapping up shares in Hong Kong, betting that a link-up between the Shenzhen and Hong Kong stock exchanges, and easier access for institutional investors, will yield quick double-digit or even triple-digit arbitrage profits.
The Hang Seng China Enterprises Index surged 5.8%, following a 6.43% gain last week, and helped the Hong Kong exchange reach record volume on Wednesday.
At Bursa Malaysia, the recent run-up took a breather as funds locked the gains. The FBM KLCI closed down 6.2 points or 0.33% to 1,850.31.
Turnover was 1.821 billion shares valued at RM1.884bil. There were 427 gainers, 372 losers and 360 counters unchanged.
Among the Hang Seng Index warrants, the buy option for the HSI-CG surged 41 sen to RM1.80, the HSI-CP added 36 sen to RM1.58, HSI-CF 32 sen to RM1.40, HSI-CQ 30 sen to RM1.30, HSI-CR and HSI-CK added 26 sen each to RM1.04 each.
On the flip side, the HSI-HA fell 30 sen to 81 sen, HSI-HD and HSI-HB 28.5 sen each to 46.5 sen and 53.5 sen, HSI-HF 27 sen lower at RM1.01, HSI-HE 24.5 sen lower at 74.5 sen while HSI-HC gave up 18 sen to 36.5 sen and HSI-H9 17.5 sen to 32.5 sen.
Among the banks, Hong Leong Bank fell 28 sen to RM14.32, and wiped out 0.91 of a point from the KLCI. CIMB was down six sen to RM6.24 while Public Bank and RHB Cap shed two sen each to RM19.26 and RM8.25 while AmBank lost one sen to RM6.40. HLFG added 20 sen to RM17.30.
As for consumer stocks, BAT fell the most, down 80 sen to RM68.50 but Nestle rose 50 sen to RM75.30, Carlsberg 32 sen to RM13.92 and GAB 30 sen to RM14.58.
Hovid rose 3.5 sen to 48 sen in active trade and Hovid-WB added 2.5 sen to 29 sen.
Poultry-based LTKM jumped 59 sen to RM6.63 on its corporate exercise.
Crude oil prices fell, with US crude down US$1.28 to US$52.70 and Brent 86 cents lower at US$58.24.
Petronas Dagangan fell 14 sen to RM20.88 while Petronas Gas shed four sen to RM23.04 but Petronas Chemicals added one sen to RM5.58. SK Petro shed one sen to RM2.31.
MISC, which surged to the highest since 2008 on Tuesday, gave up some of the gains, shedding three sen to RM8.95.
Crude palm oil for third month fell RM39 to RM2,168.KL Kepong lost 12 sen to RM22.98, IOI Corp six sen to RM4.54 and PPB Group four sen to RM15.84.
TM gave up 13 sen to RM7.47 and erased 0.83 of a point.
The ringgit firmed up against the US dollar to 3.6302 from the previous close of 3.6382.
Among the key regional markets:
Japan’s Nikkei 225 rose 0.76% to 19,789.81;
Hong Kong’s Hang Seng Index surged 3.8% to 26,236.86;
Shanghai’s Composite Index added 0.84% to 3,994/81;
Hang Seng China Enterprises Index surged 5.79% to 13,396.59;
Taiwan’s Taiex fell 0.73% to 9,571.97;
South Korea’s Kospi rose 0.6% to 2,059.26 and
Singapore’s Straits Times Index fell 0.4% to 3,460.68.