| New Warrants | Expiration | Type | Ex Price | Ratio |
| MPHB-CC (0.15) | 15/04/2011 | Call | MYR 2.00(2.20) | 4 : 1 |
| MRCB-CC (0.16) | 15/04/2011 | Call | MYR 1.60 (1.57) | 2 : 1 |
| PARKSON-CB(0.15) | 15/04/2011 | Call | MYR 5.50 (5.69) | 8 : 1 |
| AFFIN-CC(0.155) | 15/04/2011 | Call | MYR 2.70(3.03) | 4 : 1 |
ALL ARE VERY EXPENSIVEEEEEEEEEEEEEEEEEEEEEE.
Written by Surin Murugiah
Monday, 19 April 2010 10:03
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KUALA LUMPUR: Kenanga Investment Bank Bhd on Monday, April 19 launched four new call warrants under its NagaWarrants umbrella.
Its head of equity derivatives and structured products Seow Choong Liang said Affin-CC, MPHB-CC, MRCB-CC and Parkson-CB will give its customers more options to diversify their warrants trading given the current market uptrend.
"Call warrants are good trading financial instrument especially when the market is upbeat and active," Seow said in a statement on Monday.
Seow said the government's efforts to increase liquidity in the market by reducing its stake in key public listed companies coupled with the plans to list more quality corporations on the local bourse have encouraged investor confidence.
This can be seen in the recent performance of FBM KLCI, which breached the resistance level of 1,300, he said.
The recent announcements under the New Economic Model are also expected to benefit some of these companies, he said.
"We believe it is an excellent time to trade call warrants especially in view of the house technical view that the KLCI will reach 1,400 by 3Q2010," said Seow.
1 comments:
The call warrants seem to be correctly priced with option pricing model with implied volatility varying from 35% to 50%. Effect of dividends may not have been taken into account. The question for Affin-CC, has the pricing taken into considerations that there are 154 m outstanding Affin conventional warrants maturing in July 2010. Has the pricing of Affin-cc taken into consideration of the dilution effect of the mother share, and hence how will it affect the settlement of Affin-cc in April 2011? If I am not mistaken, this dilution effect will seriously diminish the value of the call warrant. Can anybody enlighten us on this?