Bangkok--11 Nov--Maybank Kim Eng
Maybank Kim Eng launches 15 new Derivative Warrants (DW) on 11 November 2013. The underlying stocks for these new DW have attractive fundamental. Three underlying stocks have never been issued as DW before by any DW issuer such as VGI (VGI42C1406A), TTCL (TTCL42C1406A) and SAMART (SAMA42C1406A) and some of the underlying stocks have never been issued as DW by MBKET such as GLOBAL (GLOB42C1406A), CENTEL (CENT42C1406A) and TTA (TTA42C1406A).
Mr. Montree Sornpaisarn, CEO, Maybank Kim Eng Securities (Thailand) PLC, said that MBKET will offer 15 new DW for the maturity life of 7.53 months with the last trading day on 23 June 2014. There are 14 Call Derivative Warrants on stocks, TRUE, JAS, PTTGC, BANPU, CENTEL, GLOBAL, HMPRO, BJC, KKP, TTA, VGI, TUF, SAMART and TTCL. There is also 1 Put Derivative Warrant on ITD after MBKET issued Call DW on ITD and gain good acceptance from investors.
Regarding the underlying stocks that have never been issued as DW before, VGI is deemed by our research department to target a high growth from media in the sky train that would beat estimate and VGI has a potential to be selected as a member stock in SET50 index early next year while TTCL has been viewed positively from the new project support in Vietnam and SAMART is expected to acquire various big projects from the government late this year.
Mr. Montree also said that to invest in derivative warrants, investors should analyze the direction of the underlying stock carefully. If analyzing that the underlying stock will go up, investors will purchase Call Warrants. On the other hand, if analyzing that the underlying stock will go down, investors will purchase Put Warrants. Additionally, investors should also study the level of the DW’s exercise price, exercise ratio and the remaining life when trading DW. Moreover, investors can follow MBKET’s research paper “Derivatives Warrant Strategy” to evaluate the value of DW through KELive Research.