FUTURES When PCPs disappoint

Press, 11 September 1986, Page 24

FUTURES When PCPs disappoint

The varying quality of commercial bills being offered for delivery in PCP futures and the lack of volatility in short-term interest rates have been keeping PCP futures In the doldrums, according to an Auckland futures executive. Mr Peter Jones, futures manager of Buttle and Company, said the contract was for "prime” commercial paper, and such terms were

hard to define. However, some in the "trade” (financial) were not happy with the quality of some of the paper being offered in settlement With the lack of direction in physical rates, causing sluggishness in interest futures, speculation had also been conservative. PCP futures did move yesterday, but there is no doubt the contract has in recent weeks generally been quiet

The September PCP contract ended 28 points up on the Tuesday close. Other months also rose: October eight points, December 15 and March 20. Government stock futures are still dull. The three months traded in Government stock eased one to five points. Mr Jones suggested that the recent movements in the kiwi dollar were likely to stimulate interest futures as well as United States dollar contracts. The low kiwi dollar (47.10 United States cents in Hong Kong at 5.40 p.m.) and the relatively high interest rates might now attract an inflow of capital, Mr Jones suggests. This would affect interest rates, though other factors, such as overdue corrections, would also count. The September dollar contract closed one point down on the Tuesday close, but October was 120 points firm. Woo! contracts all closed firmer — three to nine points up on the Tuesday close. Details of yesterday’s trading: SUS CONTRACTS Mth Open H/L Last Vol Sep 2.1146 1445/146 1445 14 Oct 2.1365 1720/300 1420 91 Contracts traded: 105 Open positions at Sep. 9: Sep 171, Oct 27, Dec 2, Mar 2, total 202 (down 54).

Contracts traded: 245 Open positions at Sep 9: Sep 260, Oct 282, Nov 12, Dec 552, Mar 424, Jun 127, Sep 48, Dec 45, Mar 47, Jun« 10, total 1807 (down 272). GOVERNMENT STOCK Mth Open H/L Last Vol Sep 8372 372/385 365 77 Oct 8371 371/366 368 42 Dec 8378 380/371 376 151 Contracts traded: 270 Open positions at Sep 9: Sep 806, Oct 152, Nov 20, Dec 626, Mar 12, total 1616 (up 38).

Contracts traded: 118. Open positions at Sep 9: Oct 164, Dec 238, Jan 357, Mar 545, May 447, Aug 255, Oct 226, Dec 104, Jan 120, Mar 34, total 2490 (up 28). WHEAT No wheat contracts were traded. Open positions at Sep 9: Feb 15, Mar 28, May 19, total 62 (same). Sydney.—September share price index futures closed at 1221.0 (up 12 points).

COMMERCIAL BILLS Mth Open H/L Last. Vol Sep 400/350 370 151 Oct 8380 385/365 365 48 Dec 8405 410/405 410 24 Mar .8400 400/400 400 22

WOOL FUTURES Mth Open H/L Last Vol Oct 563 566/563 566 13 Dec 545 551/545 550 5 Jan 548 550/548 549 19 Mar 548 555/548 552 47 May 556 558/555 555 9 Aug 562 565/562 565 8 Oct 565 566/565 566 5 Jan 565 567/565 566 12