Index-linked put warrants have an inverse correlation with the broader share market. Put warrant prices rise amid broader market losses as investors buy these warrants to hedge against broader share losses.
The situation tends to be opposite, when the broader market shows signs of improvement.
At Bursa Malaysia, Hang Seng-linked put warrants took five spots among Bursa Malaysia's top ten decliners.
Among others at 3:50 pm, HSI-HV was down 29.5 sen or 30% at 68 sen, while HSI-HY fell 17 sen to RM1.29. HSI-HV and HSI-HY were the second and 10th-largest decliners on Bursa Malaysia.
In China, the Shanghai Composite closed 1.42% higher, while Hong Kong's Hang Seng rose 3.19%. In Malaysia, the FBM KLCI added 6.3 points to 1,721.30 at 4:12pm.
Reuters reported Asian shares came close to their highs for the year on Wednesday, after surprisingly upbeat Chinese trade data offered hope that the Asian giant was finally stabilising, underpinning both risk sentiment and commodity prices.
China reported exports jumped 11.5% in March compared with a year earlier, the first increase since June and well above market forecasts. That was a huge improvement on February, even though data at this time of year tends to be distorted by the Lunar New Year holidays.
http://www.theedgemarkets.com/my/article/hang-seng-linked-put-warrants-dominate-bursa-top-decliners
