It said on Thursday these call warrants follow Kenanga’s new theme of longer-dated issuances.
It said the call warrants will be issued over the ordinary shares of other companies including Axiata Group Bhd, British American Tobacco Malaysia Bhd, Digi.com Bhd, Ekovest Bhd, IOI Corp Bhd, Pos Malaysia Bhd, Sime Darby Bhd, Sime Darby
Plantation Bhd and Tenaga Nasional Bhd.
Kenanga Investment Bank’s head of equity derivatives Philip Lim said for longer-term call warrant holders, upward-trending stocks offer generous returns.
“When a stock is uptrending, structured warrant traders benefit from the gearing effect. We notice traders now prefer longer-term dated warrants with lower implied volatilities, ” he said.
“Tenure for these new equity warrants will be around 11 months. Our previously issued warrants already included popular names such as Frontken Corp (Frontkn-CF), Pentamaster Corp (Penta-CF) and INARI AMERTRON BHD (Inari-C53), ” he added.
The KL Technology Index (KL TEC) leaped 26% this year with companies like Inari and Vitrox Corp Bhd benefitting from the US-China trade war.
Kenanga Investment Bank said according to World Bank data, Malaysia is deriving short-term benefits in terms of increases in exports of semiconductors and electronic circuits, even if overall demand for Malaysia exports is weakening.
On the domestic front, the Malaysian government also demonstrated its intent on boosting the capabilities of local technology players by setting aside various allocations during the Budget 2020.
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