Three call warrants to debut on Bursa today

by **hlk** Tue 29 Mar 2011, 08:33

The three new CWs will be issued on the ordinary shares in Ta Ann
Holdings Bhd (Ta Ann), Top Glove Corporation Bhd (Top Glove) and units
of the iShares® MSCI Japan Index Fund (EWJ)

he EWJ is an exchange-traded fund (ETF) which is listed on the NYSE
Arca . As at Dec 31, 2010, the EWJ had net assets of US$4.9 billion
(RM14.8 billion). It is a highly liquid ETF which adopts a “passive”
indexing approach to tracking the MSCI Japan Index and is used by many
fund managers to gain exposure to the Japanese equity markets. AmBank’s
CW on the EWJ is priced at 15 sen with a gearing of 4.01 times.

On
Ta Ann, the investment bank believed that the company stood to benefit
from the upcoming reconstruction works in Japan. This is because log and
plywood demand in Japan is expected to rise, together with raw
materials such as steel and cement as infrastructure and construction
spending increases. AmBank’s Ta Ann CW is priced at 15 sen with a
gearing of 3.33 times.

Although the reconstruction of Japan’s
infrastructure will not require a high amount of rubber gloves, Top
Glove, the world’s largest rubber glove manufacturer, is expected to
benefit from a dip in latex price. Japanese automakers have shut down
operations in disaster-hit areas. Automakers consume about 70% of global
rubber supply. Lower latex prices due to the low demand from automakers
are considered a positive for Top Glove as up to 82% of its exports are
made from natural rubber. AmBank’s CW on Top Glove is priced at 15 sen
with a gearing of 3.57 times.
he Edge Financial Daily, March 28, 2011