FUTURES ‘Shorts’ face big losses

Press, 16 July 1987, Page 28

FUTURES ‘Shorts’ face big losses

Those who took short positions in the Barclays share price index futures contract late on Tuesday, and failed to get out yesterday, faced a $3420 loss. The contract took a dramatic dive on Tuesday after the release of the higher-than-expected consumer price index figure for the June quarter, and a weak start was predicted for the sharemarket today. But instead the Barclays contract kicked off from its low of 3150 and ended four points off its high at 3316, for a large 105-point premium to the physical. It had been discounted 41 points at the previous close. One futures trader said that there had been a definite over-reaction to the latest CPI figure. Overseas buying Interest still remained high in the New Zealand sharemarket, showing that there was no concern about the economy. It also indicated that New Zealand shares were still cheap by world standards, the trader said. Much of the action took

place between the morning and afternoon calls. At one stage the Barclays contract had gone through a technical correction, dropping from 3290 to 3255, but once trading resumed in the afternoon the contract rallied, the trader said. Both interest rate contracts also recovered some of the lost ground from Tuesday, but higher interest rates after the release of the CPI figure were expected to remain a barrier. The Government stock (GSK) contract was sold at 8320 on the kerb, 10 points above the previous close, but when trading opened it stood at 8340. The GSK contract rallied to 8380, before easing back to close at 8362, the trader said. The bank-accepted bills behaved in a similar fashion to the GSK, although August finished on its high of 8185, after an opening low of 8130. The low was 30 points below the close of the previous session. Turnover was 19.7 per cent down on Tuesday’s record volume to 3469, but it was

still the second highest daily volume. On the Sydney Futures Exchange, September share price index futures closed at 1998.0 from 1987.0 at the open and 1982.0 on Tuesday. Details of yesterday’s trading were: SUS CONTRACTS Mth Open H/L Last Vol Jul 1.6660 6700/6660 6700 9 Aug 1.6850 6850/6700 6790 409 Sep 1.7032 7032/7032 7032 5 Contracts traded: 423 Open positions at July 14: Jly 203, Aug 203, Sep 196, total 602 (up 201). COMMERCIAL BILLS Contracts traded: Nil Open positions at July 14: Sep 43, Dec 40, Mar 39, Jun 10, total 132 (same). GOVERNMENT STOCK Mth Open H/L Last Vol Sep 8340 8380/8340 8362 2167 Contracts traded: 2167 Open positions at July 14: Sep 6990, Dec 101, total 7091 (up 724). WOOL Mth Open H/L Last Vol Jan 675 675/675 675 3 Contracts traded: 3 Open positions at July 14: Aug 38, Oct 58, Dec 111, Jan 308, Mar

318, May 205, Aug 18, Oct 1. Dec 2, total 1059 (down 6). H-DAY BANK BILLS

Contracts traded: 139 Open positions at July 14: Jly 586, Aug 252, Sep 588, Dec 179, Mar 208, Jun 130, Sep 120, Dec 125, Mar 10, total 2198 (up 184). SYDNEY ALL-ORDS (half-points omitted) Prev. Mth close H/L Last Vol Sep 1982 2013/87 1998 2036 Contracts traded: 2036 Open positions at July 14: 8026. BARCLAY’S SHARE INDEX Mth Open H/L Last Vol Sep 3150 3320/3150 3316 737 Contracts traded: 737 Open positions at July 14: Sep 1566, Dec 79, total 1645 (up 244). Corbans success Corbans Wines, Ltd, a subsidiary of Magnum Corp, has achieved further export success with New Zealand’s first wine sale to Sweden. Export manager, Mr Don Maisey, said New Zealand's growing international reputation as a premium wine producer had encouraged a delegation of Swedish buyers to visit in search of wine.

Mtb Open H/L Last Vol Aug 8130 8185/8130 8185 45 Sep 8175 8210/8165 8190 77 Dec 8225 8250/8225 8250 7 Mar 8275 8275/8275 8275 5 Jun 8300 8300/8300 8300 5