Maybank IB issues 8 new call warrants

PETALING JAYA: Maybank Investment Bank Bhd (Maybank IB) has issued eight new European style cash settled call warrants over ordinary shares of Eastern & Oriental Bhd (E&O), Gamuda Bhd, IOI Properties Group Bhd, Mah Sing Group Bhd, Malaysian Resources Corp Bhd (MRCB), Sunway Bhd, UEM Sunrise Bhd (UEMS) and UOA Development Bhd.
The structured warrants were listed yesterday with an issue size of 100 million each.
"Under Budget Malaysia 2015, RM48.25 billion is allocated for infrastructure projects. This includes the RM23 billion Second MRT Line and the RM9 billion LRT 3 Project. Maybank IB Research has an overweight call on the Malaysia construction sector with Gamuda as its top buy," Maybank IB said in a statement yesterday.
"Despite the challenging economic environment, up to 143,000 units of new affordable homes are expected to be built and a funding limit of RM500,000 for married youths with household income not exceeding RM10,000 is allocated under Budget 2015. Sophisticated investors with a bullish view of the construction and property sectors in 2015 may purchase the warrants on offer to capitalise on any share price rally on construction and property stocks," it said.
The call warrants gearings are E&O-C (3.55x), GAMUDA-C (5.52x), IOIPG-C (2.89x), MAHSING-C (5.07x), MRCB-C (3.60x), SUNWAY-C (5.50x), UEMS-C (4.37x) and UOADEV-C (4.67x). The tenure of all eight structured warrants is about 12 months.