Tuesday, October 30, 2012

Why ASTRO going down again ?

ASTRO share price was beaten again and it was dragging down by the newly listed call warrants. A total of 10 new call warrants making debut in KLSE and all of them are not performing well in their first day of trading.

These is also causing its mother share being dragging down further.

At 2.80, is it good price to go in now? Oh well i will wait for 2.50.

Astro call warrants make weak debut
- By Francis Fernandez,btimes.com.my

KUALA LUMPUR: Astro Malaysia Holdings Bhd's call warrants sank on their debut yesterday, as investors kept throwing the mother shares.

The Astro mother shares closed eight sen lower at RM2.80. The company was listed this month, with an initial public offer price of RM3 per share.

A total of 10 call warrants made its debut, raising collectively as much as RM120 million by the four banks which had issued the call warrants.

Maybank Investment Bank Bhd issued Astro CA and Astro CB, OSK Investment Bank Bhd Astro CC and Astro CD, AmInvestment Bank Bhd Astro CE, Astro CG, Astro CF and Astro CH while CIMB Bank Bhd CH and CI.

Among the Astro call warrants that traded heavily were the Astro CB and the Astro CG. The Astro CB fell 11.5 sen to 3.5 sen, while the Astro CG was 12 sen lower at three sen apiece.

All the call warrants had an issuing face value of 15 sen, with the exception of Astro CH, which is a put warrant.

A put warrant should in theory rise when the mother stock falls, as it is a bear instrument. It means that investors are betting the mother share will drop.

In the case of Astro CH, it has a RM2.28 strike price with a four-to-one conversion ratio. The Astro HA's issuing price was 4.5 sen.

Excluding the CH put warrant, all the call warrants were priced above RM3, with the exception of the Astro CE, which comes with a strike price of RM2.88 and with an eight-to-one conversion ration. The Astro CE call warrants closed 10 sen lower to five sen apiece.

Meanwhile, the Astro CA call warrants ended four sen lower to 11 sen yesterday, followed by Astro HA call warrants which dropped 5.5 sen to 9.5 sen.

The Astro CC, CD and CF closed the day unchanged at 15 sen a piece.
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