Covered warrant: Cautious ahead of the holiday

During the past week, the warrant market recorded a slight improvement in liquidity; however, the number of declining warrants increased markedly. This development indicates that adjustment pressure remains dominant and suggests that negative sentiment in the underlying market is still present. According to valuations based on the Black-Scholes model, several CWs are currently undervalued, with CVIC2513, CSTB2538, and CSTB2604 being the most notable examples. In contrast, CTCB2521, CVIV2516, and CVHM2605 were assessed to be overvalued, based on a total sample of 314 listed CWs.