KUALA LUMPUR, 20 January 2020 — Kenanga is issuing its latest batch of 12 structured warrants including the first ever put warrant on the market. The Data sonic warrant is Kenanga maiden put warrant offering investors the platform to greatly benefit from a falling market, as opposed to short selling shares and its related costs.
Put warrants give warrant holders the right to sell a given quantity of the underlying asset at a specified price, before the Expiry Date. Typically put warrant prices increase when the underlying share price decreases.
“Following our theme of long-dated warrants, this batch contains warrants of 11-month (call warrants) and an 8-month (put warrant). This is Kenanga’s inaugural put warrant and the only single-stock put warrant in the market currently. We even broadcast its fair price on our Live Matrix at www.NagaWarrants.com.” said Kenanga Investment Bank’s Head of Equity Derivatives, Philip Lim.
The call warrants will be issued over the ordinary shares of Datasonic Group Berhad, Dayang Enterprise Holdings Berhad, DRB-Hicom Berhad, FGV Holdings Berhad, Frontken Corporation Berhad, Hartalega Holdings Berhad, Malaysian Resources Corporation Berhad, Scientex Berhad, Serba Dinamik Holdings Berhad, Top Glove Corporation Berhad, UMW Holdings Berhad and V.S. Industry 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. For put warrants however, a protective put warrant strategy allows investors to guard their risks against the short-term fluctuations of owning a stock. This is especially when investors are still bullish on a stock but wish to hedge against potential short-term uncertainty” he added.