PETALING JAYA: Maybank Investment Bank Bhd has issued eight new European style cash-settled call warrants over ordinary shares of eight companies.
The companies are Dialog Group Bhd, Gamuda Bhd, IJM Corp Bhd, Malaysian Resources Corp Bhd, Mega First Corp Bhd, Sunway Bhd, UEM Sunrise Bhd and YTL Corp Bhd. The call warrants were listed today with an issue size of 100 million each.
Maybank IB Research expects the recent news of the resumption of works to develop the East Coast Rail Link (ECRL) to be positive for the construction sector.
“With about 40% of the project expected to be awarded to Malaysian contractors, the revised structure of the ECRL implies RM17.6 billion of works to be available, compared to RM10 billion under the previous structure,” it said in a statement.
“This represents considerable order book replenishment opportunities for the sector, with experienced contractors in rail development emerging as the potential main beneficiaries,” it said.
It added that the resumption of the ECRL along with further progress in works for the KVMRT 2 project are expected to stimulate a broad-based demand recovery in the second half of 2019 for the building materials sector over the projects’ construction period.
Amid this market backdrop, it noted that there may be pockets of opportunities for investors to trade on newsflow and thematics.
“This tranche of call warrants includes underlying companies in the oil and gas, construction, property and industrials sectors. Sophisticated investors interested in participating in these sectors may consider investing via the call warrants issued in this tranche,” it said.
The call warrants have the following stock short names, DIALOG-C46, GAMUDA-C68, IJMC28, MFCB-CE, MRCB-C47, SUNWAY-CT, UEMS-C68 and YTL-C26. The tenure for the eight call warrants listed is about 11 months.
