FUTURES Interest in contracts

Press, 17 March 1987, Page 42

FUTURES Interest in contracts

Futures traders had plenty to consider during yesterday’s session on the New Zealand exchange, particularly in the interest rates, wool and United States dollar contracts. The sharp drop in the kiwi during the week-end caused the United States dollar contract to spring to life, and the currency movement also caused a sharp jump in wool futures. The Government stock (GSK) and bank bills contracts (BAB) closed on or near their highs in traded months, with some consideration being given that interest rates may have peaked, at least ilyThe manager of Mair Astley Futures, Mr Geoff McDonnell, said yesterday that the GSK contract had closed at its high of 8220 for June in what happened .to be a change of sentiment by the market on rates. There were expectations that the new Government stock tender programme, to be announced soon, would show a fall in rates. i The BAB contract also i closed on its high as the I market appeared to show t confidence in the way that ; the Reserve Bank ; was handling tight liquidity through its injections of cash into the shortterm money market. The wool futures prices jumped 10c with expectations that they would go : higher. The recommendation would be to get out of short positions, he said. The sharp gain had been caused by the weakness of the New Zealand

dollar, and wool could go higher if the currency weakened further. Mair Astley had altered its prediction on the kiwi going to ' US5Bc, but it could go back to 57c. The United States dollar contract was up sharply. The Sydney spot March share price index futures closed 21.5 points down at 1617.5. Details of yesterday’s trading were: SUS CONTRACTS Mth Open H/L Last Vol Apr. 1.8330 8330/8110 8123 119 May 1.8292 8292/8292 8292 4 Contracts traded: 123. Open positions at Mar 13: Apr 69, May 12, Jun 1, total 82 (up COMMERCIAL BILLS Contracts traded: Nil. Open positions at Mar 12: Jun 123, Sep 43, Dec 40, Mar 39, Jun 10, total 255 (same). GOVERNMENT STOCK Mth Open H/L Last Vol Jun 8212 220/209 220 490 Contracts traded: 490. Open positions at Mar 13: Apr 2, Jun 1640, Dec 117, total 1759 (up 193). WOOL Mth Open H/L Last Vol May 625 641/625 641 22 Aug. 667 673/665 672 23 Oct. 672 675/672 675 6 Dec. 680 680/680 680 5 Jan. 675 675/675 675 1 Mar. 675 675/675 675 1 Contracts traded: 58. Open positions at Mar 13: Mar 2. May 241. .Aug 201. Oct 171, Dec 130, Jan 227. Mar 230, May 106, Aug 11, total 1319 (up 11). WHEAT Contracts traded: Ni. Open positions at Mar 13: May 7, total 7 (same). 90-DAY BANK BILLS Mth Open H/L Last Vol Apr. 7525 530/525 530 14 May 7670 670/660 665 8 Jun. 7790 790/790 790 5 Contracts traded: 27. Open positions at Mar 13: Apr 273, May 146, Jun 175, Sep 46. Dec 44, Mar 53. Jun 40. Sep 40 Dec 40. total 857 (up 14>.

SYDNEY ALL-ORDS (half-points omitted) Prev. Mth close H/L Last Vol Mar. 1639 1631/15 1617-21.5 2270 Jun. 1637.3 1625/08 1611-26.3 153 Contracts traded: 2423. Open positions at Mar 13: -12,604. BARCLAY’S SHARE INDEX Mth Open H/L Last Vol Mar. 3230 265/225 245 304 Jun. 3320 320/320 320 1 Contracts traded: 305. Open positions at Mar 13: Mar 2094, Jun 52, total 2146 (up 110).