WARRANTS issued on the movements of stock market indices dominated trading on the derivatives front last week.
The four most popular warrants were all linked to Hong Kong's Hang Seng Index, given the benchmark's volatile swings last week.
The most actively traded warrant was a put contract on the benchmark issued by Macquarie Bank with a strike level of 13,200 and expiring on Dec 30.
The contract, which saw 28.6 million units changing hands, lost six cents, or 19 per cent to 25.5 cents.
A call warrant also issued by Macquarie with a strike level of 13,400 and expiring on Dec 30 rose three cents, or 7.1 per cent to 45 cents with 25 million units traded.
Investors are also turning their attention to warrants issued on the local benchmark Straits Times Index (STI). The local stock market was down 4.24 per cent last week at 1,659.17.
It was closed for a public holiday yesterday.
A put warrant on the STI issued by Deutsche Bank, which has a strike level of 1,700 and expires on March 2 saw 2.3 million units traded. It lost 1.5 cents, or 3.3 per cent to 44 cents.
Equally popular was a call warrant from the bank which has a strike level of 1,650 and expiring on March 2.
It is up 1.5 cents, or 3.4 per cent to 45 cents.
A call warrant lets an investor buy into a stock or index at a preset price over three to nine months and is for those bullish on the stock.
A put warrant lets an investor sell the stock or index at a preset price.
Source: The Straits Times
Showing posts with label Create Wealth U deserve - Warrant Watch. Show all posts
Showing posts with label Create Wealth U deserve - Warrant Watch. Show all posts
Tuesday, December 9, 2008
Monday, August 4, 2008
Hang Seng Contracts Active
Aug 4, 2008
WARRANT WATCH: Hang Seng contracts active after recent volatility
By Alvin Foo, Markets Correspondent Straits Times
RECENT market turbulence is drawing investors into fresh positions for warrants linked to Hong Kong's Hang Seng Index.
Despite the volatility, the Hang Seng closed up 0.5 per cent at 22,862.6 points for the week. Last Friday, it rose 131.5 points despite beginning the day in negative territory after Wall Street dived the previous night. Of the index's 43 components, there were 29 gainers, 13 losers and one unchanged.
A Societe Generale (SG) warrants report noted: 'Investors continued to exercise caution, as the economic and financial news from the United States has been rather mixed. With no clear leads, turnover remains low.'
Hang Seng contracts were the most active in Singapore last year. They accounted for $7.89 billion, or 28 per cent, of total warrants turnover.
Investors who are bullish over the Hang Seng can consider an SG call warrant expiring on Oct 30 with a strike level of 22,800 points. Last Friday, this contract was done at 46.5 cents, with 46,000 units traded.
In contrast, those who are bearish can look at an SG put warrant, also lapsing on Oct 30, but with a 21,800-point strike level. No trades were conducted last Friday. SG feels that the short-term technical outlook for the Hang Seng is neutral.
The index was trading at between 22,089 and 22,881 last week. It is now trading at a resistance level of 22,871 points.
'If it can break through this level, the next resistance can be found at around 23,400. Support will be at around 22,000, should the index falter,' SG said.
Dealers expect the Hang Seng to face a volatile journey this week, as the market looks for direction from earnings results of blue-chip firms such as HSBC and Hang Seng Bank.
A call warrant lets an investor buy into a stock or index at a pre-set price over a period of three to nine months.
A put warrant, on the other hand, allows an investor to sell the stock or index at a pre-set price.
WARRANT WATCH: Hang Seng contracts active after recent volatility
By Alvin Foo, Markets Correspondent Straits Times
RECENT market turbulence is drawing investors into fresh positions for warrants linked to Hong Kong's Hang Seng Index.
Despite the volatility, the Hang Seng closed up 0.5 per cent at 22,862.6 points for the week. Last Friday, it rose 131.5 points despite beginning the day in negative territory after Wall Street dived the previous night. Of the index's 43 components, there were 29 gainers, 13 losers and one unchanged.
A Societe Generale (SG) warrants report noted: 'Investors continued to exercise caution, as the economic and financial news from the United States has been rather mixed. With no clear leads, turnover remains low.'
Hang Seng contracts were the most active in Singapore last year. They accounted for $7.89 billion, or 28 per cent, of total warrants turnover.
Investors who are bullish over the Hang Seng can consider an SG call warrant expiring on Oct 30 with a strike level of 22,800 points. Last Friday, this contract was done at 46.5 cents, with 46,000 units traded.
In contrast, those who are bearish can look at an SG put warrant, also lapsing on Oct 30, but with a 21,800-point strike level. No trades were conducted last Friday. SG feels that the short-term technical outlook for the Hang Seng is neutral.
The index was trading at between 22,089 and 22,881 last week. It is now trading at a resistance level of 22,871 points.
'If it can break through this level, the next resistance can be found at around 23,400. Support will be at around 22,000, should the index falter,' SG said.
Dealers expect the Hang Seng to face a volatile journey this week, as the market looks for direction from earnings results of blue-chip firms such as HSBC and Hang Seng Bank.
A call warrant lets an investor buy into a stock or index at a pre-set price over a period of three to nine months.
A put warrant, on the other hand, allows an investor to sell the stock or index at a pre-set price.
Monday, February 25, 2008
Warrant Watch: Capital Land Contracts Active!
Feb 25, 2008
WARRANT WATCH: CapitaLand contracts active on superb results
THE recent release of a better-than-expected set of full-year results has put CapitaLand warrants under the radar screen of investors.
South-east Asia's biggest developer announced last Friday that its net profit last year grew nearly three times to $2.76 billion from the previous year's $1 billion.
This trumped the average forecast of $2.2 billion from 14 analysts polled by Reuters.
The company's future seems bright, despite the current market turmoil.
Mr Ooi Lid Seng, Societe Generale's (SG's) vice-president of structured products for Asia, excluding Japan, said: 'A shortage of prime office space in Singapore will keep rental rates up, while CapitaLand's investments in fast-growing countries like India and China will help buffer it against any slowdown in earnings.'
CapitaLand shares closed down nine cents at $6.18 on Friday.
'The share has remained quite resilient, falling by only 1.2 per cent since the beginning of this year, compared with the 12 per cent fall incurred by the Straits Times Index,' Mr Ooi said.
He highlighted a CapitaLand call warrant offered by SG for those who held a positive view of the company. It has a strike price of $6.22 and expires on July 7.
That warrant closed a cent down at 24 cents on Friday, with 5.68 million units traded.
In contrast, another CapitaLand contract issued by SG saw only 7,000 units done, as it finished a cent lower at 13.5 cents. That warrant has a strike price of $6.40 and matures on June 9.
Mr Ooi feels the short-term outlook for CapitaLand is slightly positive.
'The share has rebounded by about 14 per cent since hitting its recent bottom of $5.42 on Feb 11,' he said. 'On the upside, the share will meet some resistance at $6.40, while support can be seen at $6.'
A call warrant lets an investor buy into a stock or index at a pre- set price over a period of three to nine months.
A put warrant allows an investor to sell the stock or index at a pre-set price over a fixed period of time.
WARRANT WATCH: CapitaLand contracts active on superb results
THE recent release of a better-than-expected set of full-year results has put CapitaLand warrants under the radar screen of investors.
South-east Asia's biggest developer announced last Friday that its net profit last year grew nearly three times to $2.76 billion from the previous year's $1 billion.
This trumped the average forecast of $2.2 billion from 14 analysts polled by Reuters.
The company's future seems bright, despite the current market turmoil.
Mr Ooi Lid Seng, Societe Generale's (SG's) vice-president of structured products for Asia, excluding Japan, said: 'A shortage of prime office space in Singapore will keep rental rates up, while CapitaLand's investments in fast-growing countries like India and China will help buffer it against any slowdown in earnings.'
CapitaLand shares closed down nine cents at $6.18 on Friday.
'The share has remained quite resilient, falling by only 1.2 per cent since the beginning of this year, compared with the 12 per cent fall incurred by the Straits Times Index,' Mr Ooi said.
He highlighted a CapitaLand call warrant offered by SG for those who held a positive view of the company. It has a strike price of $6.22 and expires on July 7.
That warrant closed a cent down at 24 cents on Friday, with 5.68 million units traded.
In contrast, another CapitaLand contract issued by SG saw only 7,000 units done, as it finished a cent lower at 13.5 cents. That warrant has a strike price of $6.40 and matures on June 9.
Mr Ooi feels the short-term outlook for CapitaLand is slightly positive.
'The share has rebounded by about 14 per cent since hitting its recent bottom of $5.42 on Feb 11,' he said. 'On the upside, the share will meet some resistance at $6.40, while support can be seen at $6.'
A call warrant lets an investor buy into a stock or index at a pre- set price over a period of three to nine months.
A put warrant allows an investor to sell the stock or index at a pre-set price over a fixed period of time.
Tuesday, December 4, 2007
Investors Stocking Up on Bank Contracts
Dec 4, 2007
WARRANT WATCH
Investors stocking up on bank contracts
BANKS have attracted renewed buying interest from investors after a sharp selldown last month. Traders have been loading up on bank call warrants as an affordable way to get exposure to banks.
Especially popular are warrants whose strike prices are close to current market prices. This is because a small percentage change in the mother share price may be magnified in the warrant price's percentage change.
Analysts have been making buy calls on banks. Citigroup, for one, has noted that while banks have been significant market laggards due to concerns over their collateralised debt obligations, third-quarter results have shown that any impact on earnings has been minimal.
Yesterday, one popular bank warrant was a call contract issued on DBS Group Holdings by Macquarie Bank, with a strike price of $20 and expiring next May.
It gained two cents, or 8.9 per cent, to 24.5 cents with 16 million units changing hands, as DBS gained as much as 60 cents before closing 30 cents higher at $20.40.
Macquarie Securities' head of warrants, Mr Barnaby Matthews, said: 'We have seen a lot more buyers in the calls, with the stocks down at these levels.'
He added that investors had been going for warrants with lower strike prices, echoing the cautious market sentiment.
WARRANT WATCH
Investors stocking up on bank contracts
BANKS have attracted renewed buying interest from investors after a sharp selldown last month. Traders have been loading up on bank call warrants as an affordable way to get exposure to banks.
Especially popular are warrants whose strike prices are close to current market prices. This is because a small percentage change in the mother share price may be magnified in the warrant price's percentage change.
Analysts have been making buy calls on banks. Citigroup, for one, has noted that while banks have been significant market laggards due to concerns over their collateralised debt obligations, third-quarter results have shown that any impact on earnings has been minimal.
Yesterday, one popular bank warrant was a call contract issued on DBS Group Holdings by Macquarie Bank, with a strike price of $20 and expiring next May.
It gained two cents, or 8.9 per cent, to 24.5 cents with 16 million units changing hands, as DBS gained as much as 60 cents before closing 30 cents higher at $20.40.
Macquarie Securities' head of warrants, Mr Barnaby Matthews, said: 'We have seen a lot more buyers in the calls, with the stocks down at these levels.'
He added that investors had been going for warrants with lower strike prices, echoing the cautious market sentiment.
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