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Maybank Kim Eng launches 12 new Derivative Warrants on 31 May 2013

Date: May 2013

Maybank Kim Eng launches 12 new Derivative Call Warrants (DW) on 31 May 2013 as follow: INTU42CB, ADVA42CD, DTAC42CD, BGH42CC, TCAP42CD, SCB42CE, LH42CC, CPN42CD, IVL42CE, THAI42CD, AOT42CD, MINT42CD 

Mr. Montree Sornpaisarn , CEO , Maybank Kim Eng Securities (Thailand) PLC. (MBKET) said that the company will offer 12 new Call Warrants as follow:

Call Warrant on INTUCH issued by MBKET #B  (INTU42CB)
Call Warrant on ADVANC issued by MBKET #D  (ADVA42CD)
Call Warrant on DTAC issued by MBKET #D  (DTAC42CD)
Call Warrant on BGH issued by MBKET #C  (BGH42CC)
Call Warrant on TCAP issued by MBKET #D  (TCAP42CD)
Call Warrant on SCB issued by MBKET #E  (SCB42CE)
Call Warrant on LH issued by MBKET #C  (LH42CC)
Call Warrant on CPN issued by MBKET #D  (CPN42CD)
Call Warrant on IVL issued by MBKET #E  (IVL42CE)
Call Warrant on THAI issued by MBKET #D  (THAI42CD)
Call Warrant on AOT issued by MBKET #D  (AOT42CD)
Call Warrant on MINT issued by MBKET #D  (MINT42CD)

Three distinctive features of 12 new DWs are “Selective”, “Fulfilled” and “Fresh”.
“Selective” means that the company has carefully selected the underlying stocks of DWs that are in the interesting investment themes.  These new DWs have the maturity life of about 7 months. 
“Fulfilled” means that the company has fulfilled a larger demand by issuing each new DW to be bigger size of 50-100 million units with the value of about 50 million baht each. The company would also place more bid/offer volumes for DW to be approximately 1 million baht or more in each bid/offer price.  
“Fresh” means that the exercise price of each new DW is more refreshing. When looking back 6 months ago, the underlying stock prices have gone up a lot whereby the existing DWs in the market may not have appropriate exercise prices to reflect the current stock prices. In order to solve this problem, the new DWs are designed to be 5%-15% In-the-Money that is more versatile for trading at present time and have effective gearing of about 3-4 times compared to investing directly into underlying stocks.

When investing in a call warrant, investors should buy at a right timing as when the underlying stock goes up, the price of call warrant will also go up.  Moreover, investors can follow MBKET’s research paper “Derivatives Warrant Strategy” to evaluate the value of DW through KELive Research