OSK Securities keen to boost call warrants market


  • Business
  • Friday, 09 Dec 2005

OSK Securities Bhd sees the potential in call warrants and is always working on new products for retail investors, said executive vice-president and head of derivatives and structured products, Keat Foo. 

He said OSK wanted to help develop the call warrants market and be at the forefront of that business sector.  

Speaking after the listing ceremony of OSK Big 20 Basket Call Warrants in Kuala Lumpur yesterday, Foo said: “There is a lot of potential. If you look at Hong Kong (which has the largest call warrants market in the world) as well as Singapore and Taiwan, they are doing well. The potential for this business is good in Malaysia as well.” 

Keat Foo

The Big 20 Basket Call Warrants is the first “zero-strike” Basket Call Warrants to be listed on Bursa Malaysia.  

It is a basket of 20 blue-chip counters from the Kuala Lumpur Composite Index (KLCI) representing 71% of the KLCI in terms of market capitalisation. 

The basket includes MALAYAN BANKING BHD, MISC BHD, TELEKOM MALAYSIA BHD, PUBLIC BANK BHD, IOI Corp Bhd and GENTING BHD

Foo said the Basket Call Warrants was not for investors to make a lot of money. “This is to diversify their investment choices in blue chips,” he said, adding that it was a relatively safer investment choice with sturdy capital growth. 

He said OSK Research believed that the blue-chip counters would do well. “If they go up and the economy is good, obviously it is good for the warrants.”  

Asked if OSK Research was planning similar products, Foo said: “We will try to offer products to expand investment choices, primarily for retail investors.”  

He added that the prospects were good for such products but their success depended on two major factors – the underlying market and its volatility, and investor education.  

 ZA-OSKSB :  [Stock Watch]

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