FUTURES Regaining breath

Press, 2 July 1986, Page 39

FUTURES Regaining breath

Modest changes marked trading on the Futures Exchange yesterday, as speculators regained their breath after the dives in interest-rate futures on Monday. The July Government Stock Contract closed 11 points down on the Monday close. August was down 10 points and September down 22. The PCP futures closed firmer. July was up five points on Monday (close to close). August was unchanged, September was up 15 points, and December was up 20. Mr Geoff McDonnell, futures manager of Mair Astley, Ltd, said the Government stock contract was in ho man’s land after what he described as the over-reac-tion of Monday. The physical money market was disconcerted about the size of coming stock tenders, Mr McDonnell said. “Until the money market is more confident that tenders will be adequately met, we will not see a definite trend forming.” His advice to speculators is to compare the interest rate suggested by the futures con-

tracts with the actual physical rates.

The PCP indices moved through 40 points during the day finishing near their lows, but indications were that they could rise again, especially if call rates dropped, Mr McDonnell said. "It looks as if 8400 (or 16 per cent interest) is a support level for them.” In the physical market, the Reserve Bank seemed to be conducting open market operations fairly reliably. This kept the lid on call rates, which in turn kept term rates down. The July U.S. dollar contract ended five points up on its Monday close. The kiwi dollar was off its highs at 4.50 p.m., and looked as though it finished at 5460/ 75, Mr McDonnell aid. "I can see a range of 5350 to 5500 over the next week or so.” The wool contracts closed 1c to 2c weaker, compared with Monday. Wool futures had begun to move down after the strengthening of the N.Z. dollar, Mr McDonnell said. “The wool futures can be

just as good a currency hedge as the US. dollar contract, and you won’t lose your shirt overnight” The February wheat contract, on sparse trading, closed 40 points up on the one Monday trade. Details of trading yesterday:

Contracts traded: 67. Open positions at June 30: Aug 104, Oct 277, Dec 232, Jan 264, Mar 407, May 371, Aug 293, Oct 194, Dec 53, total 2195 (down 27).

SUS CONTRACTS Mth Open H/L Last Vol Jul 1.8265 .8318/265 8300 22 Aug 1.8600 .600/600 600 5 Contracts traded: 27. Open positions at June 30: Jul 417, Aug 11, Sep 5, Dec I, total 434 (up 10). COMMERCIAL BILLS Mth Open H/L Last Vol Jul 8420 450/410 415 112 Aug 8420 420/410 410 .5 Sep 8400 415/400 400 23 Dec 8430 450/430 440 10 Contracts traded: 160. . Open positions at June 30: Jul 610, Aug 248, Sep 494, Dec 408, Mar 313, Jun 68, Sep 40, Dec 40, Mar 41, total 2262 (up 44). GOVERNMENT STOCK Mth Open H/L Last Vol Jul 8378 390/370 374 74 Aug 8380 390/370 375 291 Sep 8380 394/378 378 26 Contracts traded: 391. Open positions at June 30: Jul 534, Aug 268, Sep 170, Det total 981 (down 23). : 9,

WOOL FUTURES Mtn Open H/L Last Vol Oct 521 521/521 521 5 Dec 522 522/522 522 1 Jan 524 524/523 523 9 Mar 527 527/526 526 26 May 533 533/531 532 9 Aug 543 543/542 542 9 Oct 544 544/544 544 3 Jan 544 544/544 544 5

WHEAT Mth Open H/L Last Vol Feb 2270 2270/2270 2270 4 Mar 2255 2255/2255 2255 1 May 2300 2305/2300 2305 2 Contracts traded: 7. Open positions at June 30: Feb 30, Mar 36, May 31, total 97 (up 1).