Index-linked put warrants today's winners

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KUALA LUMPUR (Feb 9): Investors flock to snap up index-linked put warrants to hedge their positions in view of the fall after another selling wave in the US market that has spread to Asia today. Index-linked put warrants are the top gainers this morning.

Nine Malaysia-listed Hang Seng index-linked put warrants were among the top 10 gainers in Bursa Malaysia this morning.

As at 10:20am, HSI-H2Y was trading up 30 sen or 47.24% at 93.5 sen, while HSI-H2V jumped more than three times to trade at 41.5 sen.

Kenanga Investment Bank Bhd analyst Lawrence Yeo told theedgemarkets.com that investors were caught by surprise by the intensified market volatility, so they bought put warrants to hedge against their falling portfolio.

"We could see some warning sign of market volatility since last week, but it really has been intensified this week. So investors went to put warrants because of the shock factor," he said.

Yeo added that his research house viewed that the market will 'remain choppy' for the next few weeks, as investors continue to be jittery as they are not entirely convinced of the market recovery.

In the local bourse, the FBM KLCI was down 22.68 points or 1.23% at 1,816.76 points.