FUTURES Contracts hold ground

Press, 24 April 1987, Page 31

FUTURES Contracts hold ground

The interest rate contracts failed to react to yesterday’s Budget deficit and M 3 money supply announcements. - However, that may not have been entirely surprising as call rates continued to Isoar. • A futures broker said that both announcements were politically exciting news, for the Government, and looked bullish on the face of it - But the professional marketers had already been expecting the deficit report by ’the Minister of Finance, Mr Douglas. . The Government stock (GSK) contract had already 'moved up to 8330 for June ahead of the report and trading became neutral after the '■ announcement was made, he 7 said. There was no expectation -of an immediate fall in in- ; terest rates. The GSK contract closed 7

points up on Wednesday’s finish at 8327, 3 points below the high, in busier trading. The bank accepted bills (BAB) contract had continued to weaken throughout the day, with rates standing at 25 per cent for May and 23 per cent for j'une. There was some indication that the market expected rates to fall in the longer term as the September contract finished at 8055, compaied with 8043 in the previous session. However, the near months were either steady or down on yesterday’s close. The trader said that participants continued to be gunshy of interest rates, particularly when call rates were going as high as 40 per cent Until the Reserve Bank took the heat out of the call rate market there would not be any good news for the sharemarket The contracted cash market caused by the tight liquidity policy of the Reserve Bank had been the reason for the fall in share prices. The market was again weaker yesterday, the Barclays contract ending its low

at 3035, compared with 3081 on Wednesday, after a trading range of 63 points. The physical index finished at 3070. The New Zealand dollar had continued to show some volatility, although the firmer call rates had pushed it above US5Bc near the close. Activity was again Stronger in the U.S. dollar contract, although it was confined to May. >j Details of yesterday’s-trad-ing were: SUS CONTRACTS Mth Open H/L Last Vol May 1.7360 7464/7350 7464 31 Contracts traded: 31 Open positions at April 22: May 206, Jun 21, Jly 6, Sep 41, total 274 (up 8). COMMERCIAL BILLS Contracts traded: Nil. . Open positions at April; 22: Jun 123, Sep 43, Dec 40, Mar-39, Jun 10, total 255 (same). GOVERNMENT STOCK Mth Open H/L Last Vol May 8317 317/317 317 11 Jun 8316 330/311 327 747 Contracts traded: 758 Open positions at April 22: Jun 3614, Sep 36, Dec 105, total 3755 (up 61). WOOL Mth Open H/L Last Vol

May 645 665/645 665 26 Dec 698 698/696 696 12 Jan 698 698/695 697 21. Mar 725 725/725 725 2 May 735 735/731 735 27 J Contracts traded: 88 Open positions at April 22: May 146, Aug 124, Oct 105, Dec 116, Jan 309, Mar 259, May 94, Aug 16, total 1169 (down 21).. WHEAT Contracts traded: Nil Open, positions at April 22: May 7, total 7 (same). N-DAY BANK BILLS Mth Open H/L Last Vol May 7490 505/470 505 79 Jun 7690 710/670 710 41 Jly 7825 825/710 710 25 Sep 8050 055/050 055 10 Contracts traded: 155 Open positions at April 22: May 546, Jun 515, Sep 246, Dec 44, Mar 53, Jun 40, Sep 40, Dec 40, total 1524 (up 43). SYDNEY ALL-ORDS (half-points omitted) 4 Prev. Mth close H/L Last Vol Jun 1772 1771/44 1752 3303 Sep 1770 1778/50 1750 235 Contracts traded: 3538 Open positions at April 22: 13,664. BARCLAY’S SHARE INDEX Mth Open H/L Last Vol Jun 3085. 098/035 035 841 Contracts traded: 841 Open positions at April 22: Jun 1295, Dec 82, total 1377 (up 98).