Bangkok--8 Jul--SET
The Stock Exchange of Thailand (SET) accepted derivative warrants (DWs) having PTT PCL as its underlying asset as the first-ever DW listed on SET. These DWs, whose trading symbol is PTT13CA, is the first series of DWs issued by KGI Securities (Thailand) PCL.
PTT13CA is the call warrant of PTT PCL with a six-month maturity, ending in December 2009. An investor holding five units of PTT13CA will have the right to buy one share of PTT. If the holder exercises that right, KGI Securities (Thailand) PCL will make cash settlement based on the share price of PTT and the exercise price, without stock delivery. Investors can use their trading account to trade PTT13CA DWs, just like trading stocks. KGI will be the market maker for PTT13CA to ensure trading liquidity. KGI had an initial public offering (IPO) during June 22-30, 2009,” SET Chief Marketing Officer, Markets & Post-Trade Services Sopawadee Lertmanaschai reported.
“PTT13CA is the first DW in Thailand to be issued by the corporate sector, as in the past DWs were only issued by the Ministry of Finance. DWs have long been traded overseas and is very popular, with the total turnover of 5-20% of stock trading,” she continued.
PTT13CA is an attractive alternative for investors, since it costs less but can make high profits if holders correctly project the market movement. However, investors should realize that DW trading has high risks, and that their maximum possible loss is the total cost of the DWs. In addition, investors should consider the stability of DW issuer. It is the DW issuer, not the issuer of the underlying asset, which is responsible for fulfilling the investors’ right to exercise. Such fulfillment is conducted outside the capital market and there is no guarantee on the commitment of the issuer. Therefore, investors wishing to trade DWs should study and understand its nature and risks prudently before making any investment decision,” Ms. Sopawadee concluded.
For those interested in PTT13CA, please see regulations on rights in the Securities and Exchange Commission (SEC) website, www.sec.or.th, visit www.set.or.th for basic knowledge about DWs and PTT13CA trading information, or call KGI Securities (Thailand) PCL at 0 2658-8921 to 8923 for more information.
For more information, please contact S-E-T Call Center 0 2229 2222
Press office, please contact Public Relations Unit, the Corporate Communications Dept.: Ladawan Kantawong Tel: 0-2229-2036 / Kanokwan Khemmalai Tel: 0-2229-2048 / Panitee Chatpolarak Tel: 0-2229-2792