09/08/2012 (The Sun) - AmBank (M) Bhd is issuing five new European style cash-settled structured call warrants (CWs) over the shares of IOI Corp Bhd, Kulim (Malaysia) Bhd, TH Plantations Bhd, IJM Plantations Bhd and Rimbunan Sawit Bhd, which will be listed for trading tomorrow. (Aug 10)

AmInvestment Bank Bhd director and head of equity derivatives Ng Ee Fang said AmBank's latest tranche of warrants over plantation counters is prompted by the government's recent move to increase the export quota for duty-free crude palm oil (CPO) from 3.6 million tonnes to 5.6 million tonnes, which is expected to enhance the price competitiveness and attractiveness of Malaysian CPO to major importers in the global vegetable oils market.

"This is especially true for India where its own tax structure revision is seen to encourage imports of CPO rather than refined palm oil. Chinese demand for palm oil is also expected to be firm on the back of festive demand as the Mooncake Festival is just around the corner in September," she said in a statement.

"Besides that, resilient soybean prices due to severe drought in the US should lend support to CPO prices as well," she added.

With an issue size of up to 100 million each, the CWs are priced at 15 sen each with gearings ranging between 2.40 times and 5.88 times.