KUALA LUMPUR, 19 December 2019 – Kenanga is issuing its latest batch of 12 structured warrants on popular names such as Datasonic Group Berhad and Globetronics Technology Berhad. These call warrants follow Kenanga’s new theme of longer-dated issuances.
The call warrants will be issued over the ordinary shares of Axiata Group Berhad, British American Tobacco Malaysia Berhad, Datasonic Group Berhad, Digi.Com Berhad, Ekovest Berhad, Globetronics Technology Berhad, IOI Corp Berhad, Pos Malaysia Berhad, Sime Darby Berhad, Sime Darby Plantation Berhad and Tenaga Nasional Berhad.
“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,” said Kenanga Investment Bank’s Head of Equity Derivatives, Philip Lim.
“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 Amertron Berhad and ViTrox Corp Berhad benefitting from the US-China trade war.
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.