Covered warrant: Liquidity stalled

The CW market cooled down last week, reflecting investors’ cautious sentiment ahead of the long holiday. However, a positive note was that the number of rising CWs still outpaced decliners, signaling that expectations for an uptrend in the underlying market remained intact. According to valuations based on the Black-Scholes model, several CWs are currently undervalued, with CVHM2515, CVHM2508, and CVHM2509 being the most notable examples. In contrast, CVHM2520, CVRE2521, and CVHM2519 were assessed to be overvalued, based on a total sample of 259 listed CWs.