FUTURES Volatile contracts

Press, 28 July 1987, Page 28

FUTURES Volatile contracts

Futures contracts showed some volatility on the New Zealand exchange yesterday, as the General Election got nearer.

The manager of Mair Astley Futures, Mr Geoff McDonnell, said that electioneering statements from the major parties appeared to have caused some disarray on the futures markets.

Usually, futures contracts thrive on volatility but in this case there appeared to be no reason behind some of the changes, he said. The Government stock contract started near its high before dropping to 8301 and

then climbing to end 3 points off its high at 8324. The turnover was high although higher rates are making it difficult for the contract because holders of stock are finding it unprofitable. The bank bill contract also ended near its highs, although down on its opening positions in the near months.

The Barclays share price index contract had been sold down throughout the day, Mr McDonnell said. However, today was crucial for the contract to see, if prices in both shares and futures swung back the other way. The ‘ Barclays contract dropped 65 points compared with Friday’s close, narrowing the premium against the physical from 80 points to 35 points. The contract also finished 5 points off its low at 3415 after trading as high as 3505. On the Sydney Futures Exchange, September share price index futures dropped to 2051.0 from 2057.0 at the close on Friday and 2073.0 at the open. Details of yesterday’s trading were:

JUS CONTRACTS Mth Open H/L Last Vol Sept 1.7110 7110/7070 7070 6 Contracts traded: 6 Open positions at July 24: Aug

13, Sep 225, total 238 (up 15). COMMERCIAL BILLS Contracts traded: Nil Open positions at July 24: Sep 43, Dec 40, Mar 39, Jun 10, total 132 (same). GOVERNMENT STOCK Mth Open H/L Last Vol Sept 8321 327/301 324 1862 Contracts traded: 1862 Open positions at July 24: Sep 6585, Dec 111, total 6696 (up 267). WOOL Mth Open H/L Last Vol Mar 680 680/680 680 1 Contracts traded: 1 Open positions at July 24: Aug 30, Oct 54, Dec 97, Jan 288, Mar 278, May 205, Aug 18, Oct 1, Dec 2, total 973 (same). 90-DAY BANK BILLS Mth Open H/L Last Vol Aug 8130 130/112 125 38 Sep 8130 135/115 125 138 Oct 8140 140/140 140 11 Contracts traded: 187

Open positions at July 24: Aug 346, Sep 749, Oct 24, Dec 202, Mar 216, Jun 138, Sep 120, Dec 125, Mar 10, total 1930 (up 118). SYDNEY ALL-ORDS (half-points omitted) Mth

revclose H/L Last Vol Sep 2057 2077/48 2051 1365 Contracts traded: 1365 Open positions at July 24: 7930.

BARCLAY’S SHARE INDEX Mth Open H/L Last Vol Sep 3501 505/410 415 649 Contracts traded: 649 Open positions at Jul 24: 5, Sep 1984, Dec 79, total 2068 (up 70).