The 19 covered warrants were issued by SSI Securities (SSI), VPS Securities (VPS), HCM City Securities (HSC) and MB Securities (MBS). – Stock Photo vietstock.vn
HÀ NỘI – Investors suffered losses with all 19 covered warrants codes that expired in April, data from the Hồ Chí Minh (HoSE) stock exchange showed.
The 19 covered warrants were issued by SSI Securities (SSI), VPS Securities (VPS), HCM City Securities (HSC) and MB Securities (MBS).
Items were valid for six months until their expiration date of April 8 to April 22.
According to HoSE, the strike prices for these items were between 20,300 VN (US $ 0.87) and 133,000 VN, which is 8.97-12.5% below the breakeven point of 22,300-152. 000 VN.
The underlying stocks of the covered warrants were FPT Corporation (FPT), Military Bank (MBB), retailer Mobile World Investment (MWG), dairy producer Vinamilk (VNM), real estate developer Vincom Retail (VRE), VPBank (VPB ), logistics and the port company Gemadept (GMD), HDBank (HDB), the aeronautical company Vietjet (VJC) and the residential real estate company Vinhomes (VHM).
The total trading volume in the covered warrants market in April fell 12.2 percent per month to 134.35 million items and the transaction value fell 28 percent per month to 45.1 billion VN.
Foreign investors sold 1.74 billion yen worth 4.7 million items in April.
The fall in the stock market in February and March was blamed for the decline in covered warrants and as these items expired in early April, forcing investors to suffer as the underlying assets had fallen sharply.
FPT shares fell as much as 20.6 percent during the period. Vinamilk shares lost as much as 31%, Vincom Retail shares plunged 44.7%, Vietjet shares fell 34.6% and Vinhomes shares lost 37.6%.
A warrant allows its holder to buy or sell an underlying asset at a fixed price before or on a specific date if desired. The underlying asset of a covered warrant can be a single share, a basket of stocks, indices, commodities or currencies.
Covered warrants are very profitable for holders if the underlying assets grow, but the risk of loss is high if the assets decline.
At the end of April, there were a total of 52 warrant codes issued by six securities companies. Only 10 of the total advanced from their initial prices. – VNS