Singtel

Singtel insights via warrant flows: Macquarie warrants note that Singtel was the most shorted stock since its recent high. Recall, last Tuesday, telecom giant SingTel traded to its highest in almost five yrs, closing at $3.66, its highest since Jun08. Since then, the stock has been ranked the most shorted stock in terms of value for four consecutive days on the exchange, based on the daily short-sale report released by the SGX. SingTel closed at $3.56 on Fri, 2.7% lower from its high on April 9. The stock’s recent price move comes on the back of news that SingTel is one of the bidders that have survived the pre-qualification stage of Myanmar’s short-list of applicants for two telecom licenses that will be issued in June. Only 12 of 22 applicants were shortlisted. SingTel’s competitors include a joint China Mobile-Vodafone bid and groups led by France Telecom, Bharti Airtel and KDDI. All are fighting for right to operate in Myanmar, which has a population of 64 million and only 9% mobile penetration. New warrant for bearish investors to short SingTel Investors who believe that SingTel has reached its high and will head lower in the short-term may wish to consider today’s newly listed put warrant SingTelMBePW131101 (S2ZW), strike $3.50. Put warrants allow investors to potentially earn a profit when an underlying share price falls. Unlike call warrants whose prices tend to move in the same direction as the underlying share price, put warrants will tend to move in the opposite direction to the underlying share price, increasing in value as the underlying share price falls and decreasing in value as the underlying share price rises.