Maybank Investment Bank Bhd is issuing four new European style cash-settled call and four new put warrants.
The issues are over ordinary shares of AMMB Holdings Bhd (AMBANK), CIMB Group Holdings Bhd (CIMB), Eastern & Oriental Bhd (E&O) and WCT Holdings Bhd (WCT), Maybank said in a statement.
The warrants will be listed tomorrow with an issue size of 100 million each.
Maybank Investment Bank is now offering both call and put warrants to investors who have a directional view on these underlying companies.
The call warrants offer investors with a bullish view the opportunity to participate on the upside of the underlying shares for a fraction of the price while the put warrants offer investors with the opportunity to gain should the
underlying price falls.
AMBANK is Maybank Investment Bank’s top pick in the banking sector.
Factors that support this is its sustainable Return On Equity and the capacity to drive earnings much faster by focusing on efforts to build up its small and medium enterprises' franchise, lowering funding costs, plucking low hanging fruit from the insurance division and keeping costs under control.
Maybank Investment Bank has maintained a 'buy' call on AMBANK as of August 26, 2013, with RM9.10 target price.
CIMB, one of the leading universal banking groups in the region, provides consumer banking, investment banking, Islamic banking, asset management and insurance products and services.
Maybank Investment Bank has maintained a 'hold' call on CIMB as of August 27, 2013, with RM8.10 target price.
E&O has been in the news for its plan to undertake RM25 billion worth of residential and commercial projects to be implemented over 20 years for the second phase of Seri Tanjung Pinang.
Maybank Investment Bank has maintained a 'buy' call on WCT as of August 23, 2013, with a RM3 target price.-- Bernama