FUTURES Stock tender casts long shadow
The $5OO < million Government stock tender on Thursday (results on Friday) has mesmerised the futures market into inactivity. The only action yesterday came from the fall in the kiwi dollar (about 1 U.S. cent) — on the Wellington foreign-exchange market. A summary of yesterday’s movement: • The October U.S. dollar futures contract closed 345 points higher on Friday (SNZI72S a contract) and the November contract was 370 points ($1850) up. • In very light trading the October PCP (short-term interest rates) futures contract closed 27 points lower than the Friday close and suggesting a physical interest rate of 16.05 per cent. • Government stock futures closed three to six points firmer than on Friday, suggesting an interest rate of 15.70%. • Wool futures were very firm, responding to the fall in the kiwi dollar. Stock tender No. 36 will be held on Thursday. Results will be announced on Friday. The next tender has been tentatively set down for November 13. Mr Mark Thiele, of Egden Wignail Futures, said Government stock futures traded for most of the day between 8434 and 8430 and finished midrange. He could not pick a trend from the trading. The PCP trading was similar.
Mr Thiele believes that the U.S. dollar futures have further to .rise, but then will become a "sell.” (Speculators profit , from a falling market when they take a selling
position in a futures contract.) Mr Thiele suggests the time to take a selling position in U.S. dollar futures will be when the kiwi reaches 49.70 U.S. cents on the foreignexchange market On the Sydney Futures Exchange, spot December share price index futures rose 14.5 points to 1333.0. SUS CONTRACTS Mth Open H/L Last Vol Oct 1.9630 .9920/620 .9920 29 Nov 1.9725 .0090/725 .0090 35 Dec 1.9985 .9985/985 .9985 10 Contracts traded: 74 Open positions at Oct 10: Oct 668, Nov 90, Dec 2, Jan 2, Mar 3, total 765 (up 4). COMMERCIAL BILLS Mth Open H/L Last Vol Oct 8410 410/395 395 18 Contracts traded: 18. Open positions at Oct 10: Oct 241, Nov 64, Dec 599, Mar 327, Jun 128, Sep 48, Dec 45, Mar 47, Jun 10, total 1509 (down 18). GOVERNMENT STOCK Mth Open H/L Last Vol Oct 8425 432/425 430 50 Nov 8430 430/430 430 5 Dec 8425 434/425 430 312 Contracts traded: 367. Open positions at Oct 10: Oct 759, Nov 266, Dec 1865, Mar 14, total 2904 (up 204). WOOL FUTURES Mth Open H/L Last Vol Jan 550 550/550 550 1 Mar 545 550/545 550 13 May 549 553/549 553 6 Aug 562 565/562 565 4 Oct 564 567/564 567 7 Mar 572 572/572 572 2 Contracts traded: 33. Open positions at Oct 10: Oct 28, Dec 212, Jan 323, Mar 495, May 454, Aug 236, Oct 199, Dec 122, Jan 172, Mar 92, total 2333 (down 18). WHEAT FUTURES Contracts traded: 0. Open positions at Oct 10: Feb 15, Mar 27, May 19, total 61 (same).
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Press, 14 October 1986, Page 32
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492FUTURES Stock tender casts long shadow Press, 14 October 1986, Page 32
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