KUCHING: Affin Hwang Investment Bank Berhad (the Bank), the investment banking arm of AFFIN Group, has achieved a significant milestone with the launch of Malaysia’s first Commodity Futures Structured Warrants.
This innovative product is designed to cater to a diverse and sophisticated investor base, providing new opportunities to gain exposure to commodity markets, particularly Crude Palm Oil Futures (FCPO).
The launch marks a pivotal moment in diversifying investment options in Malaysia, offering both call and put warrant types to meet varying market strategies.
“These warrants, now listed on Bursa Malaysia, include the FCPO-CW01 (code: 060001), a call warrant with an exercise price of RM4,888 and an expiry date of July 30, 2025, and the FCPO-PW02 (code: 060002), a put warrant with an exercise price of RM3,888, also expiring on the same date.
“Both warrants feature an exercise ratio of 3,500 and an issue size of 100 million units,” it said.
With this, it stated that the Bank’s Commodity Futures Structured Warrants enable investors to access commodity futures at a fraction of the underlying contract price, offering opportunities to potentially benefit from both upward and downward market movements.
“With lower entry costs and the flexibility to benefit from market trends, these warrants empower both seasoned and new investors to diversify portfolios with ease.”
Commenting on the matter, Affin Hwang Investment Bank Berhad chief executive officer Nurjesmi Mohd Nashir said that the launch enriches the portfolio with innovative investment options, empowering investors to capitalise on price movements in key commodities like Crude Palm Oil, a crucial commodity in Malaysia’s economy.
“This initiative underscores our commitment to providing financial solutions that evolve with our clients’ needs, aligned with the pillar of Unrivalled Customer Service in Affin’s AX28 Strategic Plan.
“By prioritising exceptional service, we aim to deliver tailored, seamless solutions that broaden investment opportunities for our clients,” he said.
Meanwhile, Bursa Malaysia CEO Datuk Muhamad Umar Swift commended Affin Hwang’s innovativeness in launching Malaysia’s first Commodity Futures Structured Warrants.
“This timely introduction aligns with the market’s growing demand where Structured Warrants have witnessed remarkable growth, with participation in terms of number of retail investors surging by 69.1 percent year-on-year from 2023.
“Furthermore, there was a record high of 1,804 issuances in a single year, last year. This strong growth underscores the market’s appetite for diversified and sophisticated investment tools.
“Such products support investors’ needs for portfolio diversification in their investment strategies, and are aligned with Bursa Malaysia’s ongoing efforts to broaden investment opportunities, and facilitate wider market access and participation for investors,” he said.
For the record, Bursa Malaysia had issued an amendment to the MAIN Market Listing Requirements to expand the scope of underlying financial instruments for Structured Warrants to include commodity futures, on Dec 12, 2023.
For more information about the Affin Hwang’s Commodity Futures Structured Warrants, those interested may contact their Helpdesk at +603 2146 7624 or email ahibb.warrants@affingroup.com.
