KUALA LUMPUR: Maybank Investment Bank Bhd (Maybank IB) has issued eight new European style cash-settled call warrants over ordinary shares of Guan Chong Bhd
, Pos Malaysia Bhd
, QL Resources Bhd
, SKP Resources Bhd
, SP Setia Bhd
, Syarikat Takaful Malaysia Keluarga Bhd, Taliworks Corp Bhd
And Uchi Technologies Bhd
In a statement Thursday, Maybank IB said the call warrants were listed on March 8 with an issue size of 100 million each. The tenure for the eight call warrants listed is approximately nine months.
“Maybank IB Research expects corporate earnings for companies under the KLCI to grow by 3.8% this year, with the downside risk having tapered slightly following substantial impairments made by some firms during the fourth quarter of last year (4Q18),” it said, adding that the primary driver for the recovery was the banking sector, with core earnings estimated to grow by 6.1% on a year-on-year basis.
Maybank IB Research currently has an end-year target of 1,760 points for the KLCI, based on 16.3 times twelve months forward earnings. It advocates a defensive core equity strategy, while occasional volatility may provide investors the opportunity to trade based on news flow and thematics.
The bank said this tranche of call warrants included underlying companies in the real estate, transportation, manufacturing and electronics sectors. It also advised sophisticated investors who are interested in participating in these sectors may consider investing via the call warrants issued in this tranche.