Monday, November 05, 2007

CWs for HK stocks as at November 2, 2007

Today, three new CWs were listed. They are CHMOBIL-C5, HKEX-C5 & ICBC-C4, which are all Non-collateralised European-style Cash-settled Call Warrants. CHMOBIL-C5 & ICBC-C4 were issued by CIMB while HKEX-C5 was issued by Deutsche Bank.

As usual, the new CWs are highlighted in blue. The attractive CWs (with premium of less than 4%) is higlighted in light green while those with premium exceeding 10% are highlighted in pink. I have also highlighted those CWs that will be expiring in January 2008, i.e. in about 3 months' time (in dark green).

With the HSI dropping 1526 points to close at 28942 today, it appears that the HSI is in serious danger of breaching its short-term uptrend- if you were to use the 20-day SMA to plot the uptrend. A quick rebound in HSI is necessary tomorrow, failing which more price correction will follow. This will lead to further correction in the CWs of Hong Kong stocks that are traded on our exchange.

Chart: HSI's daily chart as at November 2 (courtesy of Yahoo Finance)

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