Affin Hwang launches Malaysia’s first crude palm oil futures structured warrant

Affin Hwang Investment Bank Bhd has launched Malaysia’s first crude palm oil futures structured warrant on Bursa Malaysia.

The investment bank said it is optimistic about its demand, particularly among retail investors, with an expected outstanding volume of at least one million this year.

Chief executive officer Nurjesmi Mohd Nashir said the launch of this new product enhances the bank’s portfolio with innovative investment options, empowering investors to capitalise on price movements in key commodities such as crude palm oil.

“This key initiative underscores our commitment to providing financial solutions that evolve with our clients’ needs, in line with the pillars of Affin’s strategic plan.

“By prioritising exceptional service, we aim to deliver tailored, seamless solutions that broaden investment opportunities for our clients,” he said at the launch event at Bursa Malaysia last Friday.

In a statement following the launch, Bursa Malaysia chief executive officer Datuk Muhamad Umar Swift said the timely introduction of the new product by Affin Hwang aligns with the market’s growing demand, as structured warrants have experienced remarkable growth.

“We saw a 69.1 per cent year-on-year surge in retail investor participation from 2023.

“Furthermore, last year saw a record high of 1,804 issuances in a single year,” he said.

This strong growth highlights the market’s appetite for diversified and sophisticated investment tools, he noted.

Muhamad Umar said that such products cater to investors’ needs for portfolio diversification as part of their investment strategies.

“This initiative is also aligned with Bursa Malaysia’s ongoing efforts to expand investment opportunities and facilitate broader market access and participation,” he added.

Tags: futures, Affin Hwang Investment Bank Bhd, Crude palm oil, Malaysia, investment