FUTURES Correction mastered
A technical correction in the Barclays share price index futures contract and the sharemarket was quickly overcome yesterday.
The technical correction had been expected, as the contract had weakened on Tuesday, but after about 10 minutes of selling both futures and equities came back strongly.
One trader said that dealers had stood back in amazement at the way that the Barclays contract had gone yesterday.
The General Election was not clear-cut, which should be providing uncertainty, the trader said.
However, factors for the bullish trend included the resolution of the Judge Corporation/Renouf Corporation shareholdings, the likely favourable outcome of the proposed Wattie/Goodman merger, and the activity surrounding N.Z. Forest Products.
The premium narrowed considerably, from 108 points in the previous session to 27 points yesterday. However, at one stage the Barclays contract hit 3745 before coming back to 3720. The trading range was an extremely large 190 points, or $3BOO.
The bank-accepted bill contract responded positively to the decline in the 90-day bill rate yesterday, the index gaining 35 points. Trading was again quiet, the dealer said.
The Government stock tender closed on a quiet note yesterday ahead of today’s stock tender. Yields were down yesterday, compared with being up in the previous session.
In Sydney, the September share price index futures climbed to a record 2195.0 from 2189.5 on Tuesday, taking the contract to a big 106.9 point premium to the physical market. The opening positions for the New Zealand contracts were unavailable last evening because the figures were not supplied to the Press Association by the New Zealand Futures Exchange.
Details of yesterday’s trading were:—
SUS CONTRACTS Mth Open H/L Last Vol Aug 1.7762 7762/7762 7762 2 Sep 1.8030 8030/7760 7760 14 Contracts traded: 16.
Open positions at August 4: N.A
COMMERCIAL BILLS Mth Open H/L Last Vol Contracts traded: Nil.
Open positions at August 4: Sep 43, Dec 40, Mar 39, Jun 10, total 132 (same). GOVERNMENT STOCK Mth Open H/L Last Vol Sep 8344 351/337 345 714 Contracts traded: 714. Open positions at August 4: N.A.
Contracts traded: 26. Open positions at August 4: N.A. M-DAY BANK BILLS Mth Open H/L Last Vol Aug 8175 180/170 180 35. Sep 8175 180/175 180. 18 Contracts traded: 53. Open positions at August 4: N.A. SYDNEY ALL-ORDS (half-points omitted) Prev.
Open positions at August 4: 10,725. BARCLAY’S SHARE INDEX Mth Open H/L Last Vol Sep 3650 745/555 720 614 Contracts traded: 614. Open positions at August 4: N.A.
WOOL Mth Open H/L Last Vol Aug 680 680/680 680 1 Oct 690 690/690 690 1 Dec 700 710/700 710 2 Jan 702 714/705 714 2 May 735 745/735 745 6 Aug 750 768/750 768 14
Mth close H/L Last Vol Sep 2189 2198/65 2195 2233 Dec 2237 2234/34 2234 1 Contracts traded: 2234.
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Press, 6 August 1987, Page 31
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466FUTURES Correction mastered Press, 6 August 1987, Page 31
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