Sun Hung Kai Properties was a blue-chip favourite yesterday, pulling ahead of other property issues. Its shares have risen 7.6 per cent in April, since the Government awarded two large contracts to consortiums that included the property giant.
A covered call warrant launched yesterday may have given the shares a boost. NatWest Markets launched 25 million American-style warrants on Sun Hung Kai Properties shares at a price of $2.107 each. Investment banks often buy shares in the open market before issuing a covered warrant.
Ten warrants can be converted into one share at a strike price of $63.325 versus a closing price of $74.50 yesterday, up $1.25 from Monday's close. The equity-linked derivatives carry a premium of 13.28 per cent and a gearing of 13.28 per cent. Expiration will be October 1997.
