FUTURES Excitement in shares

Press, 25 February 1987, Page 35

FUTURES Excitement in shares

The futures market is expecting activity in the share market today. Rumours of moves that would raise share prices caused activity in Barclay’s index futures yesterday. The contracts began the day quietly, falling to 3005 before being bought strongly late in the afternoon, said a Wellington futures broker. Late in the day the March contracts were about 3070. The late flurry was caused by book squaring on rumours of movement in share prices today, the broker said. Mr Mark Thiele, of Egden Wignall and Company Futures, a chartist, thinks share-index futures will rise today. But he does not think they will reach 3100 points. Share-index futures closed 30 points up on their Tuesday close. At 3070 they were 80 points below the physical index — a discount of 2.56 per cent. The Barclays index rose 4.10 points. Interest-rate futures traded in a very tight range. Government stock contracts rallied early,, but were then sold down. The Wellington broker said investors were trying to read the effects of the huge tax take coming up within two weeks. About $2 billion would flow to the Government, the broker said. This would strongly underpin interest rates, with many other economic effects, such as firm support for the New Zealand dollar.

Mr Thiele said Government stock futures seemed ready for another move down. The March Government stock futures contract closed a point down on the Monday close and on its low for the day. April and June contracts firmed, but on lighter trading. March futures on 90-day bank-accepted bills closed 13 points down on their Monday close. Mr Guy Spooner, of Marshall Futures, said one North Island broker was making a strong buying stand in the expectation the New Zealand dollar will weaken later in the year and wool prices subsequently will rise. U.S. dollar futures were again very quiet, with only three trades. Details of yesterday’s trading: SUS CONTRACTS Mth Open H/L Last Vol Mar. 1.8260 8260/260 8260 3 Contracts traded: 3. Open positions at February 23: Mar. 196, Apr. 2, May 6, Jun. 1, total 205 (same). COMMERCIAL BILLS Contracts traded: nil. Open positions at February 23: Mar. 313, Jun. 123, Sep. 43, Dec. 40, Mar. 39, Jun. 10, total 568 (same). GOVERNMENT STOCK Mth Open H/L Last Vol Mar. 8188 193/187 187 198 Apr. 8215 215/215 215 5 Jun. 8241 245/240 240 65 Contracts traded: 268. Open positions at February 23: Mar. 2408, Apr. 54, Jun. 915, total 3377 (up 7). WOOL Mth Open H/L Last Vol May 619 620/619 619 27 Aug. 640 646/640 644 42 Oct. 645 660/645 660 6 Dec. 653 653/653 653 1 Jan. 660 660/655 655 7 Mar. 665 665/665 665 7 May 670 670/669 669 6 Contracts traded: 96. Open positions at February 23: Mar. 121, May 304, Aug. 205, Octi 179, Dec. 127, Jan. 218, Mar. 196, May 105, Aug. 10, total 1465 (down 1). WHEAT Contracts traded: nil. Open positions at February 23: Mar. 1, May 8, total 9 (down 13). 90-DAY BANK BILLS Mth Open H/L Last Vol Mar. 7495 502/485 497 119 Jun. 7870 870/850 850 16 Contracts traded: 135. Open positions at February 23: Mar. 608, Apr. 3, May 10, Jun. 129, Sep. 46, Dec. 46, Mar. 41, Jun. 40, Sep. 40, Dec. 40, total 1003 (up 38). SYDNEY ALL-ORDS Mth Open H/L Last Vol Mar. 1562 579/61 1563 2036 Jun. 1569 575/59 1559 64 Contracts traded: 2100. Open positions at February 24: 13,654. BARCLAY’S SHARE INDEX Mth Open H/L Last Vol Mar. 3025 74/005 70 493 Contracts traded: 493. Open positions at February 23: Mar. 1154, Jun. 52, total 1206 (down 16).