AmBank issues 6 new call warrants

AmBank (M) Bhd is issuing six new European style cash-settled structured warrants to meet investor demand for trading opportunities and investment alternatives as the Malaysian government announces the 2012 Budget.

For AmBank's latest issuance, there will be six call warrants (CW) over the ordinary shares of KFC Holdings (Malaysia) Bhd, Parkson Holdings Bhd, AEON Co (M) Bhd, POS Malaysia Bhd, IOI Corporation Bhd and SP Setia Bhd.

In a statement today, the banking institution said the structured warrants will have tenures of approximately eight months and will be listed on Oct 10, 2011 with issue size of up to 100 million each.

"For AmBank's upcoming tranche of structured warrants, we are providing investors with investment opportunities to ride on potential positive news from the 2012 Budget.

"The 2012 Budget is expected to announce measures that are consumer-friendly as the government seeks to spur domestic demand and consumer spending," AmBank said.

Prime Minister Datuk Seri Najib Tun Razak, who is also the Finance Minister, is scheduled to table the one-year budget in Parliament on Friday.

AmBank added the measures could come in the form of cash vouchers, special rebates, a voluntary reduction in employee's contribution to EPF or even a potential salary hike or bonus for civil servants.

"These initiatives would help to increase disposable income and subsequently boost demand for consumer goods in the domestic market.

"Companies such as KFC, Parkson and AEON are well positioned to benefit from this. The recent global market sell-off provides excellent trading opportunities with AmBank's warrants over blue-chips like CIMB and Petronas Chemicals trading below five sen each recently," AmInvestment Bank Bhd Director/Head, Equity Derivatives Ng Ee Fang said.

Besides the consumer goods counters, AmBank is also issuing warrants on IOICorp, SPSetia and POS -- market leaders in their respective industries -- to complement their existing warrant issues, the banking institution added.

"This offer is aimed at sophisticated traders who want to trade on the direction and volatility of KFC, Parkson, AEON, IOICorp, SPSetia and POS.

"The new CWs have gearings ranging between 4.56 and 7.42 and are targeted at investors who want leveraged exposure to the underlying on both the upside and downside," AmBank said.
-- BERNAMA