Monday, August 06, 2007

CWs over KLCI & HSI

On Friday (3rd August), two new CWs over indices were listed. They are KLCI-C1 & HIS-C1, which are European-style Cash-settled CWs over the Kuala Lumpur Composite Index (‘KLCI’) & the Hang Seng Index (‘HSI’), respectively.

KLCI-C1 was issued at an IPO price of RM0.215 with exercise ratio of 500:1; exercise level of 1,380 and maturing on 3rd March 2008. On the first day of listing, the KLCI-C1 dropped to RM0.165, reflecting the lower level of the KLCI (which closed at 1,335.42). At that price & index level, the KLCI-C1 was trading at a premium of 9.5%.

On the other hand, HSI-C1 was issued at an IPO price of RM0.40 with exercise ratio of 2,500:1; exercise level of 23,000 and maturing on 29th February 2008. On the first day of listing, the HSI-C1 dropped to RM0.26, reflecting the lower level of the HSI (which closed at 22,495.17). At that price & index level, the HSI-C1 was trading at a premium of 5.1%.

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