One year on from ABN Amro Equity Derivatives NZ Limited listing 15 Instalment Warrants to the market, NZX now boasts 36 warrant listings, including a series by UBS NZ Limited.
“NZX remains a strong supporter of ABN Amro and UBS who have led the way in growing this type of product,” said Geoff Brown, NZX Head of Products. “We have seen tremendous growth in the trading of warrants and this in turn has impacted positively on the underlying liquidity of these shares.”
The total number of trades for Instalment Warrants for the first quarter in 2006 reached 1,524, a 184% increase from second quarter trading in 2005. The total value and volume traded have also seen a significant increase over the past 12 months.
“Interest in Instalment Warrants has increased over the past 12 months because of the quality of the investments available,” Brown said. “The current products cover prominent NZX Listed Issuers and we look forward to more leading underlying constituents products in the future.”
Warrants are primarily used by investors as a means of leveraging their portfolio. Warrants enable investors to essentially ‘lay-by' their shares by putting down an initial, partial payment, receiving entitlements (e.g. dividends) throughout the lifecycle of the warrant, and paying a final instalment on the maturity date.
Investors should direct enquiries and requests for Investment Statements to any accredited NZX Firm.
