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Global Derivatives Articles

MELEWAR-WB : Mother Share Safer Bet as Out-Of-Money Warrant Cornered

The new warrant of Melewar Industrial Group Berhad (Melewar) made its debut at Bursa Malaysia on 24 August 2018.  This warrant was issued as a sweetener to subscribers of Melewar’s recently completed one for one rights issue.  Subscribers of two rights shares at 20 sen per share would receive one free warrant.  However, the rights issue was undersubscribed with subscription rate of just under 60% as the rights issue price was not set at an attractive price even with the free warrant.  The share price has now fallen substantially below the rights issue price and was last traded at 15.5 sen at the close of trading on 4 September 2018.  MELEWAR-WB, which rose to as high as 11 sen on the first day of trade, ended trading at 7 sen on 4 September.

BIOHLDG-WA: Rich Valuation Justifiable

The share price of Bioalpha Holdings Berhad reached a 52-week high of 27.5 sen on 24 August after the company announced a multifold increase in profit a day ago.  However, the share price faced some profit taking earlier this week as investors digest the latest earnings report.  Bioalpha share closed at 26.5 sen on 28 August while the company warrant BIOHLDG-WA ended trading at 13.5 sen.

IJACOBS-WA: Big jump in share capital a concern

The company warrant (IJACOBS-WA) of Ideal Jacobs (Malaysia) Corporation Berhad began trading in Bursa Malaysia on 10 August 2018.  The warrant opened trading on the first day at 15.5 sen and touched a high of 16 sen before closing at 11 sen.  IJACOBS-WA has since then been trending down as shareholders who got the free warrant started selling down.  Ideal Jacobs issued 490.93 million free warrants to its shareholders on the basis of one free warrant for every five shares held.  At the close of trading on 21 August 2018, IJACOBS-WA last traded at 9 sen while the mother share closed at 23 sen.

MEXTER-WA in last week trading at a discount

When a warrant entering the final weeks of trading, it usually trades at no premium or even at a discount as the time value of warrant decays at an accelerated speed.  It thus come as no surprise that the company warrant of Mexter Technology Berhad (MEXTER-WA), which expires on 17 September 2018, began trading at significant discount for the last few weeks as it enters the final days of its trading life.  MEXTER-WA will ceased trading after 24 August 2018 to allow investors to exercise the warrant by 14 September which will be the last market day of the exercise period.  At the time of writing, MEXTER-WA was trading at a discount of 7.5% with the warrant price at 24 sen and the mother price last traded at 40 sen.

PWROOT-WA: Attractive for the short term

The company warrant of Power Root Berhad (PWROOT-WA) made its debut at Bursa Malaysia on 27 July 2018.  This warrant was given free to shareholders following a bonus issue of warrants based on 1 bonus warrant for every 5 shares held.  The company also implemented a 1 for 5 bonus issue of shares at the same time.  As the exercise price of the new warrant of RM1.54 is above the mother share price, PWROOT-WA traded limit up at 30.5 sen from the reference price of 0.5 sen on its debut.  PWROOT-WA fluctuated between a high of 55 sen and a low of 41 sen before correcting settling to close at 48 sen on 7 August 2018.  The mother share ended trading on the same day at RM1.50. 

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Analysis

Warrant Ranking by Premium (7 Aug 2016)

The following is the list of Warrant Ranking by Premium

Warrant Ranking 7 Aug 2016 by Premium

MALAYSIA LOAN STOCK ANALYSIS 27 MAY 2015

The following is a list of loan stock listed on Bursa Malaysia as at (date).

Malaysia Loan Stock Analysis 270515

Change in Shareholdings (1/5/2015 - 31/5/2015)

The following is a list of change in shareholdings as at (date).

May 2015 (1 May 2015 - 31 May 2015)

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