CLSA LAUNCHES STRUCTURED WARRANTS ON BURSA MALAYSIA

KUALA LUMPUR, April 25 (Bernama) -- CLSA Securities Malaysia Sdn Bhd (CLSA) today officially launched its structured warrants on Bursa Malaysia Securities Sdn Bhd.

CLSA Malaysia country head Kit Lim said the firm has become the second international issuer of structured warrants in the Malaysian market. 

To mark its debut, CLSA is introducing six warrants linked to some of the most actively traded companies, including MYEG Services Bhd and Gamuda Bhd.

Other companies are Genting Bhd, Inari Amerton Bhd, Petronas Chemicals Group Bhd and YTL Power International Bhd.

“These are names familiar to every Malaysian investor, and this is just the beginning. 

“We look forward to expanding our coverage, deepening engagement with investors, and building a trading experience that matches the ambition of Malaysia’s growing retail market,” she said in a statement in conjunction with the CSLA Securities Malaysia’s Structured Warrants listing ceremony today.

Meanwhile, CITIC CLSA Malaysia equity derivatives director Zac Chooi shared that the company plans to expand its structured warrants coverage to as many as 100 stocks by the end of 2025.

“So, at the pace of six to ten names every two weeks, and hopefully by the third quarter of 2025, we will cover most of the major big-cap (large market capitalisation) stocks from various sectors that are eligible for structured warrants issuance in Malaysia,” he said.

He noted that to meet the issuance criteria, a company must have a market capitalisation of at least RM500 million.

Hence, he stated CLSA will focus primarily on mid- to large-cap stocks, particularly within sectors that are likely to attract investor interest.

“At the moment, we are issuing single stocks here. We do have plans to proceed with the issuance of index warrants,” he said.

Commenting on the demand for large-cap issuances, Chooi noted that this correlates with broader market activity, adding that, overall, the company thinks the market has performed well. 

CLSA is a part of CITIC CLSA, the wholly-owned subsidiary and overseas platform of CITIC Securities, China’s leading investment bank.

Meanwhile, Bursa Malaysia Bhd chief executive officer Datuk Fad’l Mohamed said the exchange has achieved a participation mix from both institutional and retail investors, with institutional participation accounting for 59 per cent, complemented by strong retail participation at 41 per cent.

He said the average daily trading value of structured warrants has shown a remarkable upward trend, increasing from RM56 million in 2023 to RM123 million in 2024, which reflects the broad acceptance of structured warrants as an investment option that captures market opportunities.

“With CLSA joining our structured warrants market, investors gain access to expanded opportunities and a broader portfolio of locally backed instruments.

“This move supports market vibrancy, while prioritising initiatives aimed at empowering investor participation and growth,” he said.

-- BERNAMA