FUTURES Rally after record?

Press, 16 September 1987, Page 39

FUTURES Rally after record?

The Barclays share price index futures contract for September did not move as much as the physical index yesterday, in spite of a new high being set on the sharemarket.

For both stock players and futures investors the question is whether a strong rally is on the cards now that the previous high on the sharemarket has been broken.

The Barclays contract in September did not react as sharply as earlier in the month when it looked likely then that the previous high was to go.

The contract touched a high of 3989 yesterday, compared with 4045 earlier in the month, but the lower level may reflect that the mandatory closeout is approaching in two weeks.

One futures dealer said that he would be looking for a gain of about 3 per cent on the physical index above its previous high to be certain that the rally was going to be sustained.

The previous high was generally recorded as a technical support level, "and I’m not convinced that the new mark can be held.” Traders could expect the premium to come back in September, now that the mandatory closeout was two weeks away. The contract traded in a narrow 27 point range in September, ending six points off its high at 3983, for a 20point gain on the day. The premium was down to 65 points, and the dealer said that it could be expected to go a lot lower in the next fortnight. In the Government stock (GSK) contract, trading in December exceeded September as this month’s close out occurs today. The contract closed on its lows as investors looked for better buying. Buying opportunities were considered to

be around 8400, but the dealer said that it was more likely to be around 8390. SUS CONTRACTS Mth Open H/L Last Vol Contracts traded: nil. Open positions at September 14: Sep 311, Oct 1, Mar 3, total 315 (down 197). COMMERCIAL BILLS Mth Open H/L Last Vol Contracts traded: nil. Open positions at September 14: Sep 7, Dec 40, Mar 39, Jun 10, total 96 (same). GOVERNMENT STOCK

Contracts traded: 609. Open positions at September 14: Sep 4343, Dec 400, total 4743 (up 19). WOOL

Contracts traded: 20. Open positions at September 11: Oct 29, Dec 94, Jan 327, Mar 354, May 247, Aug 30, Oct 1, Dec 2, total 1084 (same). W-DAY BANK BILLS

Contracts traded: 324. Open positions at September 14: Sep 857, Oct 377, Nov 129, Dec 270, Mar 214, Jun 152, Sep 132, Dec 137, Mar 12, Jun 12, total 2292 (down 61). SYDNEY ALL-ORDS (half-points omitted) Prev. Mth close H/L Last Vol Sep 2250 2287/45 2286 1561 Dec 2325 2384/25 2370 172 Contracts traded: 1733. Open positions at September 14: 9872. BARCLAY’S SHARE INDEX Mth Open H/L Last Vol Sep 3962 989/962 983 215 Dec 4170 190/170 185 22 Contracts traded: 237. Open positions at September 14: Sep 1060, Dec 215, total 1275 (up 44).

Mth Open H/L Last Vol Sep 8372 384/370 370 191 Dec 8419 420/405 406 263 Mar 8400 400/400 400 5 Jun 8400 450/400 437 150

Mth Open H/L Last Vol Dec 666 666/666 666 4 Jan 685 685/685 685 5 Mar 696 696/696 696 2 May 723 723/718 718 9

Mth Open H/L Last Vol Sep 8130 135/35 95 50 Oct 8140 140/90 90 155 Nov 8160 160/105 110 41 Dec 8180 190/140 140 49 Mar 8140 140/140 140 1 Mar 8250 500/250 500 28