| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers Z > Headlines for ZTO Express > News item |
Morning Commentary: ZTO Express convertible notes in focus early, gain on earnings
By Abigail W. Adams
Portland, Me., May 18 – It was a quiet start to the session in the convertibles secondary space on Thursday with activity surrounding recent issues continuing to diminish.
While market players were hopeful for an active week of new issuance, the convertibles primary market was largely quiet as the investment-grade primary market logged its busiest week of the year and the high-yield bond market saw a steady stream of dealmaking.
Equity indexes shrugged off a weak open to add to the strong gains of the previous session as optimism surrounding debt ceiling negotiations returned to the market.
The Dow Jones industrial average was up 27 points, or 0.08%, the S&P 500 index was up 0.44%, the Nasdaq Composite index was up 0.84% and the Russell 2000 index was up 0.25% shortly before 11 a.m. ET.
There was $53 million in reported convertible bond trading volume about one hour into the session with few names seeing concentrated trading activity.
Earnings-related news continued to spark price movements in outstanding issues with ZTO Express’ 1.5% convertible notes due 2027 active early in the session.
The 1.5% notes made strong outright and dollar-neutral gains with the company’s equity lifted post-earnings.
The notes rose 4.25 points outright with stock up about 4%.
The convertibles were changing hands at 110.25 early in the session, according to a market source.
They expanded on the move up.
ZTO’s American Depositary Shares were changing hands at $29.59, an increase of 3.93%, shortly before 11 a.m. ET.
The Shanghai-based express delivery company reported earnings of $2.33 versus analyst expectations for earnings of $1.78.
Revenue was $8.98 billion versus analyst expectations for earnings of $9.27 billion.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.