CapitaLand and Keppel Corp warrants are expected to become the centre of attention for investor this week, just ahead for the companies’ release of their Q1 earnings results.
Keppel Corp announced the release of its Q1 earnings results on Thursday. Recently, it declared a $518 million contract to construct an energy-from-waste heat and power plant in Britain. The company also won a marine and offshore contract worth $300 million.
One of the most active contracts of Keppel Corp is the call warrant from Macquarie Securities, which will expire on 3 November, with $5.80 sharp price. It closed to 3.5 cents higher last Friday with 1.32 million units done.
Keppel Corp’s shares closed to 21 cents at $5.74 on Friday. “The earnings report could bring about some caution and traders should seize any selling pressure to buy as support is strong at $4.90”, says Mr. Najeeb Jarhom, senior vice-president of research for Am Fraser Securities.
CapitaLand, on the other hand, will release its earnings on Friday and it recently drew the spotlight due to its $1.84 billion rights issue.
Last week, the company suffered from profit-taking as several investors feared that stocks might run up too far. CapitaLand’s share closed to $2.85 last Friday, a cents down than the previous day. “The recent spike was more due to property stocks being oversold previously,” DMG Research noted.
A $2.90 exercise price was issued by Macquarie as call warrant. Macquarie is among the most active contracts of the company. It closed to 29.5 cents last Friday with 2.34 million units.
A call warrant makes any investors’ purchase into an index or stock at a pre-set price for over three to nine months. Meanwhile, a put warrants make the investors sell the index or stocks on a pre-set price.