FUTURES GSK, PCPs falling

Press, 9 July 1986, Page 37

FUTURES GSK, PCPs falling

Interest-rate futures continued to fall yesterday, a sign of market apprehension about possible interest rates at the Government stock tender on Friday. Mr Peter Jones, futures manager of Buttle and Company, Auckland, said the futures market was indicating an interest rate for Government stock of 16.5 per cent. (At the last tender the rate was 15.2 per cent). Activity in the next few days was likely to consist of hedging physical market positions.

Speculators making a oneoff punt on the Friday rates would be brave or silly —- depending on the result. The July and August GSK contracts ended yesterday 19 points down on the Monday close, and the September contract was 20 points down. The July PCP contract closed 55 points down on Monday. July U.S. dollar futures closed 169 points firmer than on Monday, and August was 200 points ($NZ1000) firmer.

Mr Jones said the kiwi dollar seemed to have found a reasonable trading range. It was a good buy at 52 U.S. cents, and a good sell at 55. Speculators in U.S. dollar futures should watch for any

discount rate cut in the United States. The effect on the U.S. dollar would then depend on whether .other major countries followed immediately. Trading in wool futures was confined to mid to distant months, and closing prices were near to Monday closing prices. In Australia, speculators on the share all-ordinary futures had an exciting day, with the physical index down as much as 28 points at one stage. Of North American futures, Mr Jones said energy con-

Open positions at Jul 7: Jul 464, Aug 40, Sep 5, Dec 1, total 510 (up 30).

Contracts traded: 366

Open positions at July 7: Jul 614, Aug 299, Sep 501, Dec 401, Mar 313, Jun 68, Sep 45, Dec 45, Mar 47, Jun 10; total 234 (up 8).

tracts would be a good buy at an oil price of SUSIO a barrel or under. The total risk would then be only SUSIO,OOO (the contracts are for 1000 barrels) — if the oil price fell to .zero. Details of yesterday’s New Zealand trading:

Open positions at July 7: Jul 555, Aug 458, Sep 180, Dec 9, total 1202 (down 4).

Open positions at July 7: Aug 102, Oct 262, Dec 232, Jan 267, Mar 409, May 375, Aug 281, Oct .194, Dec 56, Jan 23, total 2201 (up 10).

Open positions at July 7: Feb 30, Mar 35, May 30, total 95 (same). <■ ’ ;;

JUS CONTRACTS Mth Open H/L Last Vol Jul 1.8795 .8795/750 .8760 16 Aug 1.8945 .8945/900 .8900 .4 Contracts traded: 20

COMMERCIAL BILLS Mth Open H/L Last Vol Jul 8340 365/330 330 151 Aug 8360 365/320 320 103 Sep 8341 345/320 325 40 Dec 8500 500/350 350 47 Mar 8375 375/375 375 1 Sep 8400 400/390 390 8 Mar 8400 400/400 400 6 Jun 8410 410/410 410 10

GOVERNMENT STOCK Mth Open H/L East Vol Jul 8340 344/328 333 64 Aug 8349 349/328 332 380 Sep 8340 350/329 330 65 Contracts traded: 509

WOOL FUTURES Mth Open H/L Last Vol Mar 529 529/528 528 2 May 536 536/536 536 2 Aug 545 545/545 545 1 Oct 546 546/546 546 1 Dec 547 547/547 547 2 Jan 548 548/548 548 2 Contracts traded: 10

WHEAT Mth Open H/L Last Vol Feb 219.0 219.0/219.0 219.0 1 Mar 220.0 220.0/220.0 220.0 1 Contracts traded: 2