AHIB targets 96 structured warrants this year, with an eye on aviation and tourism sectors

by S BIRRUNTHA / pic source: Affin Bank

AFFIN Hwang Investment Bank Bhd (AHIB) aims to issue a minimum of 96 structured warrants, with an average of eight warrants per month this year.

AHIB equity derivatives associate director Lim Chin Anh said the company will focus on the aviation and tourism sectors in issuing warrants this year, in line with the theme of China’s reopening.

“We will analyse trends in the market. For now, we see sectors such as aviation and tourism increasing as China relaxes some of its public policies,” he told reporters in conjunction with AHIB’s inaugural structured warrants listing ceremony in Bursa Malaysia today.

Lim said AHIB will also look at global economic developments and interest rates, which affect banks and the financial sector because there is demand from investors.

He added that the investment bank foresees markets picking up very fast and noticed interest in certain counters.

“Hence, it is easy for us to just scale up and ramp up our issuance. So far, we are aiming for an average of eight issues per month, but we hope it can be higher.

“The issuance of AHIB’s first four series of structured warrants aims to meet the increasingly diverse and sophisticated needs of local investors,” he noted.

The bank is also keen to offer structured warrants that will enable investors to gain exposure to underlying shares for a fraction of its price and the opportunity to benefit from both bull and bear markets.

Meanwhile, Affin Bank Bhd president and group CEO Datuk Wan Razly Abdullah said the introduction of the first four structured warrants is a significant addition to the bank’s existing suite of investment products, offering investors an alternative to their existing investment strategies.

“It is part of our ongoing efforts to innovate our product offering to meet the demands of the structured warrants market,” he said.

AHIB today listed three call warrants and one put warrant consisting of Dagang NeXchange Bhd (call warrant), Hengyuan Refining Co Bhd (call warrant) and MyEG Services Bhd (call warrant/put warrant).

In 2022, according to AHIB, the monthly traded structured warrants volume in Malaysia surpassed five billion units, peaking at 9.67 billion units in March 2022. In addition, structured warrants recorded a monthly average traded value of RM1.15 billion, with a high of RM1.84 billion in June 2022.

Bursa Malaysia Bhd CEO Datuk Muhamad Umar Swift said more than 24,000 retail investors traded structured warrants last year, with a total trade value of RM13.83 billion.

“There were 1,447 new structured warrant listings in 2022, close to an all-time high of 1,452 listings in 2021,” he said in his opening remarks.