26 April 2005
Following the exceptionally strong performance of the resources sector recently, Macquarie Bank announces the launch of the first Rio Tinto call warrant with a $100 exercise price, and the first BHP Billiton call warrant with a $40 exercise price.
Pia Cooke, a manager within Macquarie's Equity Markets Group, said: "Demand has been unprecedented for resource stocks in the past 18 months, with many resource stocks hitting record highs. On the back of this, there has been a record increase in activity in trading warrants, and traders have been progressively asking for warrants with higher exercise prices in anticipation of the sector continuing its momentum."
"BHP and RIO are by far the most actively traded stocks in the warrants market. To date, if a trader wanted to trade a RIO call, in either the ETO or warrant market, the highest exercise price available is a $98.08 June 06 call Exchange Traded Option, or $90 July 06 call warrant. Now, with the launch of the $100 RIO March 07 and $40 BHP March 07 call warrants, traders who have a strong positive view on BHP and RIO have a more leveraged alternative available."
Both call warrants expire in March 2007, offering traders exposure to two reporting periods. According to Ms Cooke, "Traders are often very active in our warrants around reporting periods in anticipation of profiting from market surprises. By offering March 2007 call warrants over BHP and RIO, two reporting periods are captured, which should not only appeal to those traders looking to follow this strategy, but should also appeal to those investors wanting to take a longer term, leveraged view on each of these stocks."
In 2005, according to ASX statistics, the Australian Warrant market recorded a record $6.5b in turnover eclipsing the 2004 record of $3.7b. During 2005, the number of warrants on issue increased from 1,771 to a record 2,447. Macquarie is the leading issuer of warrants in the Australian market.
For further information, please contact:
Equity Markets Group
Tel: (612) 8232 6974
Macquarie Warrants are issued by Macquarie Bank Limited ABN 46 008 583 542 via a Product Disclosure Statement which can be found on the ASX website at www.asx.com.au. The information provided above has been prepared by Macquarie with all reasonable care, however Macquarie does not guarantee its accuracy or completeness and is not liable for any errors, omissions or misstatements therein. This document is general and doesn’t take into account the particular circumstances or needs of any specific person who may read it. Potential investors are advised to seek independent professional advice on the implications of investing in Macquarie Warrants.