FUTURES Sell-off in financials

Press, 18 June 1986, Page 41

FUTURES Sell-off in financials

Interest-rate contracts were sold off yesterday as speculators took profits. Mr Peter Jones, futures manager of Buttle and Company, Auckland, said it was a typical reaction after the rise in interest-futures indices with the decline in interest rates. In PCPs (short-term interest futures), the July contract closed yesterday 30 points down on the Monday close. August closed 46 points down, and September closed 30 points lower. Government stock futures were steadier, July closing two points lower than on Monday, August one point lower, and September two points down. Mr Jones said movements in the physical interest markets were similar corrections to those in futures, with a slight firming in rates. In U.S. dollar futures, prices fell as the N.Z. dollar finned a little. July closed down 40 points ($2OO per contract) and July was down 203 points ($1015). The volume of trades in the July contract indicated the movement was a correction after the rapid rise in U.S. dollar futures since last Thursday. The wheat contracts were back to life again, with 20 trades. Mr Jones said he expected the wheat, like wool, to be a means for small businesses and speculators to trade against movements in the N.Z. dollar.

Buttle and Company is one of the country’s bigger traders in overseas futures, and Mr Jones said there were some good opportunities in energy futures in America. A straddle could be taken on gasoline and heating oil futures. These at present were about 320 points apart but should move to about 1340 points later in the year. The return to speculators on such a straddle is SUS4.2O a point. Details of yesterday’s trading in New Zealand:

Contracts traded: 21. Open positions at June 16: Aug. 106, Oct. 190, Dec. 215, Jan. 239, Mar. 306, May 269, Aug. 212, Oct. 188, Dec. 31, total 1756 (up 11). WHEAT Mth Open H/L Last Vol Feb. 2280 280/280 280 5 Mar. 2310 310/300 305 11 May 2345 345/340 340 4 Contracts traded: 20. Open positions at June 16: Feb. 30, Mar. 37, May 25, total 92 (same).

SUS CONTRACTS Mth Open H/L Last Vol Jul. 1.8875 .8875/8730 .8770 81 Aug. 1.8847 .8847/8847 .8847 2 Sep. 1.8957 .8957/8957 .8957 1 Dec. 1.9316 .9316/9316 .9316 1 Contracts traded: 85 Open positions at June 16: Jul. 247, Aug. 10, Sep. 5, Dec. 1, total 263 (up 9). COMMERCIAL BILLS Mth Open H/L Last Vol Jul. 8510 512/490 490 74 Aug. 8505 515/490 494 24 Sep. 8480 490/480 490 65 Dec. 8525 525/505 505 9 Mar,-8495 495/495 495 2 Contracts traded: 174. Open positions at June 16: Jul. 383, Aug. 146, Sep. 483, Dec. 385, Mar. 293, Jun. 40, Sep. 40, Dec. 40, Mar. 40, total 1850 (up 12). GOVERNMENT STOCK Mth Open H/L Last Vol Jul. 8474 480/462 466 89 Aug. 8475 478/462 468 38 Sep. 8481 481/468 468 9 Contracts traded: 136. Open positions at June 16: Jul. 457, Aug. 104, Sep. 147, Dec. 3, total 711 (down 31). WOOL FUTURES Mth Open H/L Last Vol Oct. 527 527/527 527 1 Dec. 527 527/527 527 5 Jan. 530 530/529 529 7 Mar. 535 535/533 533 3 May 538 538/538 538 1 Aug. 550 550/550 550 1 Oct. 548 548/548 548 1 Dec. 550 550/550 550 2