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STI Fell 2 Consecutive Weeks
01 Feb 10

The STI fell for a second consecutive week, tumbling 2.6% week-on-week (wow) to close at 2,745.4 last Friday...

Genting crashed on potential dilution from conversion of bonds
Genting plunged 13.1% wow and closed at $1.06 last Friday. The stock crashed last Tuesday after it announced that it will mandatorily convert S$450 million of bonds into ordinary shares at the Conversion Price of S$0.95 on 9th February 2010. Investors fearing the potential share dilution sold off the shares heavily.

Call warrant GentingSPMBLeC100401 (I3UW) exercise price $1.10 fell 49.3% wow.

Call warrant GentingSMBLeCW100621 (J2NW) exercise price $1.20 fell 43.8% wow.

Long dated GentingSMBLeCW120402 (J2UW) exercise price $1.15 fell 22.2% wow. The long dated Genting call warrant has fallen by a smaller amount as long dated warrants in general have lower effective gearing levels and slower rates of time decay.


Tiger Airways fell below its listing price
Tiger Airways was not spared from the sell off on the local bourse last week. The shares tumbled 7.6% wow and closed at $1.46 last Friday, below its listing price of $1.50.

Call warrant TigerAirMBLeCW100602 (KD9W) exercise price $1.60 fell 36.6% wow.


CapitaLand – investors still jittery
CapitaLand fell 5.2% wow to close at $3.86 last Friday. The stock has tumbled 11.9% from its 3 month high of $4.38 seen the previous week on fears of a potential property bubble in China and the Chinese government moving in to tighten credit.

Over the past week, investors holding put warrant CapitalaMBLePW100402 (JC2W) exercise price $3.80 gain 27.0% wow. Put warrants allow investors to profit from declines in underlying share prices.

In line with the plunge in CapitaLand’s share price, call warrant CapitalaMBLeCW100601 (J1ZW) exercise price $4.10 fell 33.8% wow while long dated call warrant CapitalaMBLeCW120103 (JA7W) exercise price $4.10 fell 20.4% wow.

 

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