THE large capitalised property counters put in a good showing last week, undeterred by the news that home prices here had shrank 14 per cent in the first quarter of this year.
News that pending home sales in the United States had risen while home prices in Britain rose last month for the first time since October 2007 gave local property developers a fillip.
CapitaLand was up 11.6 per cent in just a week, rising from $2.42 to $2.70. City Developments climbed 12.6 per cent in the space of a week.
These property counters outperformed the benchmark Straits Times Index, which rose by only 4.3 per cent over the same period.
One call warrant issued by Macquarie Securities on CapitaLand would have given the holder a whopping return of 53.8 per cent. Expiring next month, with an exercise price of $2.816 and a conversion ratio of 1,000 shares to 1,657 warrants, the CapitaLand warrant rose 3.5 cents to 10 cents. But only 10,000 units changed hands for this particular warrant.
An active warrant which offered a conversion ratio of 1,000 shares to 1,657 warrants and an exercise price of $2.319 was 3.5 cents higher at 29 cents. Nearly six million units were traded.
Keppel Corp was another counter on the rise. It rose 9 per cent in just a week, closing at $5.75 on Friday. A call warrant issued by Macquarie rose 23 per cent or 1.5 cents to eight cents. About 50,000 units were traded. The warrant expires in October, has an exercise price of $6.80 and a conversion ratio of one share to 12 warrants.
A call warrant lets an investor buy into a stock or index at a preset price over three to nine months. A put warrant lets an investor sell the stock or index at a preset price.
LEE SU SHYAN
Source: Straits Times, 6 April 2009