UOB

UOB insights via Warrant Flows: Macquarie warrants note that the STI slipped 0.4% on Friday when the nation’s GDP unexpectedly contracted last qtr. According to the Trade Ministry, co’s struggled with a labour shortage and exports fell amid an uneven global recovery. This came at the same time when Prime Minister Lee Hsien Loong tightened restrictions on foreign workers. UOB underperformed the STI and was the worst performing stock among the STI constituents, falling 1.5% day on day. Investors who bought 750k of put warrant UOB MB EPW130902 (S1VW, strike $19.20) yesterday were rewarded when the warrant jumped 10.6% for the day. Investors who want to profit from downward movements can potentially do so by investing in put warrants since puts increase in value when the underlying asset decreases in value.