Kenanga Investment Bank Bhd under its NagaWarrants umbrella brand is issuing 12 new European style cash-settled call warrants to meet investors' demand for trading opportunities and alternative investments.
The call warrants will be issued over the ordinary shares of Airasia Berhad, AirAsia X Berhad, Bermaz Auto Berhad, Ekovest Berhad, Felda Global Ventures Holding Berhad, Globetronics Technology Berhad, Jaya Tiasa Holdings Berhad, KSL Holdings, SKP Resources Berhad, Sunway Construction Group Berhad, Unisem (M) Berhad and WCE Holdings Berhad.
Call-warrants are leveraged instruments. For instance, by participating in AirAsia’s AAX-C9, an investor is exposed to an effective gearing of 2.4x and a sensitivity of 1.2 ticks.
This means when AAX moves up by 1%, its call warrant AAX-C9 moves up by 2.4%. A sensitivity of 1.2 ticks means that AAX must move up by 1.2 ticks to cause a 1 tick movement in AAX-C9.
These 12 structured warrants are European Styled Non-Collateralised Cash Settled Warrants with a tenure of 7 months.
"Warrants are a tactical weapon for short-term traders, not suitable for long-term investments. To this purpose, we hope to educate investors in selecting and trading leveraged products wisely in this current bullish market," said Lee Kok Khee, Head of Group Equity Broking.