Wednesday, September 26, 2007

New listing: ANGANG-C1, CHEUNGK-C1, CCCC-C4, CHLIFE-C3

The table above shows prices of the call warrants at different premiums (from 0% to 25%), based on the latest closing prices of the underlying shares.
By referring to past information, we can assume that investors are most likely willing to purchase newly listed CWs at 15% premium on a normal trading day. If the market is extra bullish, a 20% premium wouldn't be much of a problem. Using a premium of 15%, we can roughly guess the prices of the CWs for tomorrow.

Angang Steel (0347)
ANGANG-C1 @ RM0.10 ; premium 11.85%
At a premium of 15%, CW price is RM0.113 (13.18% gain)
Note: Angang Steel's H-share is still trading around 30% discount to its A-shares.

Cheung Kong (0001)
CHEUNGK-C1 @ RM0.11 ; premium 9.94%
At a premium of 15%, CW price = RM0.147 (33.93% gain)
Note: The recent rate cut in Hong Kong has benefited property stocks.

China Communications Construction (1800)
CCCC-C4 @ RM0.11 ; premium 19.14%
At a premium of 15%, CW price = RM0.088 (20.36% loss)
Note: CCCC's share price has not moved much for the past 2 weeks, causing its CW to have a higher premium. Nonetheless, I reckon CCCC-C4 will still be able to stay on the green side tomorrow.

China Life Insurance (2628)
CHLIFE-C3 @ RM0.11 ; premium 5.44%
At a premium of 15%, CW price = RM0.169
(53.69% gain)
Note: China Life's share price has just started to move, and is heading to 45HKD.

7 comments:

Anonymous said...

I am a beginer on the e-trading, and i am using the HLEBroking. For this CHEUNG-C1 counter, the reason I bought it is because the HLEBroking info page show the expiry date and the conversion price wrongly around the month on Jan to March. It just changed back to the correct one recently. Anyone face same problem?

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