Maybank IB issues eight new call warrants

4 May 2019

Source: Borneo Post (Kuching)


KUALA LUMPUR: Maybank Investment Bank Bhd (Maybank IB) has issued eight new European style cash-settled call warrants over ordinary shares of Dialog Group Bhd, Gamuda Bhd, IJM Corporation Bhd, Malaysian Resources Corporation Bhd (MRCB), Mega First Corporation Bhd, Sunway Bhd, UEM Sunrise Bhd and YTL Corporation Bhd with an issue size of RM100 million each.

The call warrants, each with an 11-month tenure, were listed today, it said in a statement.

Maybank IB said the resumption of works to develop the East Coast Rail Link (ECRL) is expected to be positive for the construction sector.

"With about 40 per cent 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.

"This represents considerable order book replenishment opportunities for the sector with experienced contractors in rail development emerging as the potential main beneficiaries," it said.

Additionally, the further progress of the Klang Valley MRT 2 (KVMRT 2) project is expected to stimulate a broad-based demand recovery in second half 2019 for the building materials sector over the project's construction period.

"Amid this market backdrop, there may be pockets of opportunities for investors to trade on newsflow and thematics," Maybank IB added.

Besides construction, the tranche of call warrants also includes underlying companies in the oil and gas, property and industrial sectors. — Bernama