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Kenanga Investment Bank issues maiden put warrant
Last update: 20/01/2020

KUALA LUMPUR, Jan 20 -- Kenanga Investment Bank Bhd (Kenanga) is issuing latest batch of 12 structured warrants, including the only single-stock put warrant currently on the market.

In a statement today, Equity Derivatives head Philip Lim said the Datasonic Group Bhd’s warrant is Kenanga’s inaugural put warrant and its fair price is available on www.NagaWarrants.com.

He said the latest batch of structured warrants include 11-month call warrants and the eight-month put warrant. 

“For longer-term call warrant holders, upward-trending stocks offer generous returns, as, when a stock is uptrending, structured warrant traders benefit from the gearing effect.

“Meanwhile, a protective put warrant strategy allows investors to guard their risks against the short-term fluctuations of owning a stock. This is especially when investors are still bullish on a stock but wish to hedge against potential short-term uncertainties,” said Lim.

Aside from Datasonic, Kenanga’s latest batch of call warrants will be issued over the ordinary shares of Dayang Enterprise Holdings Bhd, DRB-Hicom Bhd, FGV Holdings Bhd, Frontken Corporation Bhd, Hartalega Holdings Bhd, Malaysian Resources Corporation Bhd, Scientex Bhd, Serba Dinamik Holdings Bhd, Top Glove Corporation Bhd, UMW Holdings Bhd and V.S. Industry Bhd.

Kenanga said the put warrant offers investors the platform to greatly benefit from a falling market, as opposed to short selling shares and its related costs.

Put warrants give warrant holders the right (but not the obligation) to sell a given quantity of underlying asset at a specified price on or before the expiry date.

Typically, put warrant prices increase when the underlying share price decreases.

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