SG Listed Products
www.sgwarrants.co.uk
 

 

9th May 2008

Oil has been the major story in global asset markets this week.  The price has shot higher on speculative demand from investors and on supply concerns following more unrest in .  From a little over US$60 per barrel a year ago, the price has more than doubled to touch US$126 per barrel, having only broken through the US$100 mark at the start of the year.  Some analysts have even been quoted as saying the price could hit US$200 per barrel this year.  Investment bank Goldman Sachs said the possibility of US$150-US$200 a barrel over the next six months to two years was "increasingly likely."  Not surprisingly, call warrants on oil have been in the black and have returned some dramatic gains – the ST37 Brent 07/2008 120 Jun 08 calls are up by 142% over the week.

Another commodity to hit new highs is platinum, which has gained on news of a new ETF-type investment product in the which could increase investment demand from institutions.  The price of platinum has risen to US$2058 per ounce, driving the value of the SP36 Platinum 1800 Jun 08 calls up by 73% over the week, to 162.5p.

On the corporate front, the directories business Yell Group stands out.  Its shares have risen from 166p at the end of April to 196.5p just over a week later.  Buyers have reacted to good results from the company Idearc, which operates some similar business lines.  Yell’s own full-year results are due to be announced on May 20th.  The ST32 Yell Group 400 Dec 08 call warrants have risen by 82% on the week.

Andrew McHattie

Andrew McHattie MA (Cantab) founded The McHattie Group investment publishing business. He has been the publisher and editor of the UK’s leading warrants newsletter “Warrants Alert” since its inception in 1989. He also edits a range of other warrant publications and services including “Warrants Alert Professional” and “The Warrants Directory Online.” He is chairman of McHattie Investment Management, and the manager of the McHattie Warrants Alert Fund unit trust.
The above text expresses the views of the author and not SG. The McHattie Group is regulated by the Financial Services Authority.



This week sees trading updates on International Power (888p) and Diageo (1043p). Depending on whether you are bullish or bearish, SG offers a full range of highly leveraged warrants allowing investors to speculate and/or hedge.

International Power (425p)
400p Dec 08 Call (SV31) 3.4x leverage, currently 80.9p
400p Jun 08 Put (SQ18) 7.7x leverage, currently 20.0p


Diageo (1043p)
1000p Jun 08 Call (SR04) 7.6x leverage, currently 9.05p
975p Jun 08 Put (SK26) 12.9x leverage, currently 2.21p


Global Equity Benchmarks
Index YTD perf Weekly perf  Close  
FTSE 100

-3.91%

-0.17% 6,204.7
FTSE 250 -2.07% 1.42% 10,437.3
DJ EUROSTOXX 50 -13.59% -1.95% 3,801.95
DOW JONES IA -3.86% -2.34% 12,752.3
NIKKEI 225 -10.79% -2.80% 13,655.34
NASDAQ -6.10%  -1.22% 1,957.66

Currency Benchmarks
Benchmark YTD perf Weekly perf Close*
GBP/USD -1.89% -1.16% 1.9488
GBP/EUR -7.35% -1.35% 1.2612
EUR/USD 5.89% 0.18% 1.5452
USD/JPY -7.74% -2.27% 103.01

*Mid Price.
Source: Bloomberg as at 09/05/2008

 
Commodities
Benchmark YTD perf Weekly perf  Close*
Gold 5.37% 2.57% 878.46
Silver 12.57% 1.49% 16.6551
Oil 30.24% 7.46% 125

Volatility Benchmarks
Benchmark YTD perf Weekly perf  Close 
VIX -12.71% 8.03% 19.64
VDAX 9.72% 4.18% 17.95

Latest news

Download the new factsheet on the SG Commodities Warrants Product Range

 
Top moving warrants for week of 02/05/08 - 09/05/08

Code Underlying Spot (GBp)  Warrant Price* (GBp) Warrant Price Move^ Type Strike Expiry
UP Movers
ST37 Brent 07/2008 124.30 44.60 +131.69% Call 120 12/06/2008
SP91 Brent 07/2008 124.30 80.75 +104.69% Call 110 10/06/2008
SV43 Brent 07/2008 124.30 81.15 +101.12% Call 110 10/06/2008
ST35 Brent 12/2008 123.70 54.90 +90.29% Call 130 10/11/2008
ST32 Yell 197 0.74 +89.74% Call 400 19/12/2008
DOWN Movers 
SP48 Carphone Warehouse G 268 0.35 -73.28%  Call 410 20/06/2008
SO16 RBS 349 1.08 -68.05% Call 450 20/06/2008
SV44 Brent 12/2008 124.30 2.22 -67.83% Put 100 10/06/2008
SP47 Carphone Warehouse G 268 1.81  -64.51%   Call 360 20/06/2008
SO10 Lloyds 437 1.93 -62.88%  Call 550 20/06/2008
Source: SG as at 09/05/2008 *Mid Price.^Offer to Bid.

To access the full warrants list, please visit www.sgwarrants.co.uk or send a request by email to ukwarrants@sgcib.com
The definition of the underlined financial terms is available by clicking on the term.

Listed Structured Products Update

Accelerators
Name Code Description YTD Perf^ Week on
week Perf^
Global Index
Bear Accelerator 3
SN03 6.5x positive participation in any fall between -2.5% and -30% in one of the three main global indices: FTSE100, S&P500, DJ Eurostoxx 50, over 3 years, with only 1x negative participation in any rise in these indices. -6.57% 1.17%
UK Property
Reverse Accelerator
SG36 300% participation in any fall in the FT EPRA UK Property Index (to a maximum fall of -33%), with capitalat risk only if the index rises by 55% or more from the level at issue 19.06% 1.59%
US Dollar Bear Certificate SG27 300% of any fall in value of the USD against a weighted basket of currencies (British Pound, Euro, Japanese Yen and Australian Dollar) over a three year period 7.46% -0.92%

Capital Guaranteed 
Name Code Description YTD Perf^ Week on
week Perf^
Global Index
Bear Accelerator
SN02 100% Upside participation, 100% capital protection at maturity, March 2013 -5.29% -1.16%
Source: SG as at 09/05/2008 ^Offer to Bid
 

Trackers Update


Trackers (July 2015 Expiry)
Name Code Description Monthly
Perf^
Week on
week Perf^
ERIX Tracker SG40 Tracks the performance of the European Renewable Energy Total Return Index 2.91%  -1.50%
URAX Tracker SG39 Tracks the performance of the World Uranium Total Return Index 7.45% 7.29%
SOLEX Tracker SG38 Tracks the performance of the World Solar Energy Index 3.56% 1.86%
BIOX Tracker SG37 Tracks the performance of the World Bioenergy Total Return Index 0.59%  -1.59%
Source: SG as at 09/05/2008 ^Offer to Bid.
 

Lyxor ETF Update


Lyxor Exchange Traded Funds (ETFs) are passively managed index tracking funds listed on the London Stock Exchange.
>> Click here to download the educational brochure

Exchange Traded Funds (ETFs)
Index TIDM First listing Monthly
Perf^
Week on
week Perf^
Closing
price* (GBp)
FTSE All-Share LFAS 15/05/07 3.76% -0.19% 639.88
FTSE 100 L100 15/05/07 3.76% 1.17% 1069.79
FTSE 250 L250 15/05/07 3.90% 0.20% 326.14
Reuters/Jefferies CRB index LCTY 28/06/07 5.46% 5.42% 2143.75
Reuters/Jefferies CRB Non-Energy index LCNE 28/06/07 -0.38% 2.68% 1381.63
MSCI Emerging Markets

LEME

14/01/08

3.97%

-1.93%

611.63

MSCI Latin America

LLAT

14/01/08

5.11%

-0.60%

247.38

MSCI World

LWOR

13/03/08

3.69%

-0.03%

781.50

Dow Jones Industrial Average LIND 13/03/08 3.35% -0.98%

656.25

NASDAQ-100

LNSQ

13/03/08

8.19%

-0.07%

1006

Gold Bullion Securities GBS 31/03/04 -5.83% 1.83%  86.24
*Mid Price
Source: Bloomberg as at 09/05/2008
Disclaimer

Warrants are not suitable for everyone. You should not deal in warrants unless you understand their nature and the extent of your exposure to risk. You should be satisfied that they are suitable for you in the light of your circumstances and financial position. This disclaimer cannot disclose all the risks and other significant aspects of warrants. If you are in any doubt you should consult an appropriately qualified financial advisor.

Lyxor ETFs are open-ended mutual investment funds established under French Law and approved by the Autorite des Marches Financiers. The funds are UCIT III compliant however only those funds recognised under S.264 of the Financial Services and Markets Act 2000 may be promoted to retail investors in the UK.
A list of recognised funds with prospectus is maintained on www.lyxoretf.co.uk. Any investment in Lyxor ETFs carries with it certain risks set out in the Prospectus. Lyxor ETFs are not suitable for all investors, it is recommended that potential investors study the Prospectus and seek their own independent financial advice before making any decision to invest in Lyxor ETFs. SG Option Europe may be the only market maker.
Investors' capital is at risk.