FUTURES Pressure from reports

Press, 9 October 1987, Page 16

FUTURES Pressure from reports

Both interest rate contracts came under pressure yesterday because of two announcements by the Reserve Bank. Interest rates rose yesterday in reaction to Wednesday’s announcement that the

Reserve Bank had increased the rediscount rate on Government stock. The managing director of Egden Wignail and Company Futures, Dr Brent Layton, said that the market had also been surprised by the low offer of $lOO million for 1992 Government stock in next week’s tender, with the rest being shorter-dated. Both the Government stock (GSK) and bank-accepted bills contracts were easier, with some selling in the market, he said. The Barclays share price futures contract caused some surprise yesterday, by opening above the previous day’s bearish close. However, share prices dropped sharply lower when the market opened and futures came back. The December contract dropped as low as the 3770 s before finding support and then retraced its steps to hit a new high for the day of 3866 and holding firm as the sharemarket closed. However, after the close a Wellington broker began to sell the contract down aggressively with other futures dealers buying, leading to the conclusion that the lone seller was doing a sharemarket/ futures interplay, Dr Layton said. After the premium narrowing for the last few sessions, it became extended again yesterday, ending at 158 points compared with 92

points on Wednesday. Wool contract prices dropped sharply lower as the kiwi dollar continued to strengthen, bearing out a comment by another futures dealer earlier in the week that it offered good selling opportunities. Those farmers who had hedged before the recent falls were in a good position, he said. In Sydney, the December share price index futures finished marginally lower at 2227.0 from 2229.0 on Wednesday, after hitting an early high of 2255.0. Details of yesterday’s trading were: SUS CONTRACTS Contracts traded: Nil. Open positions at October 7: Oct 311, Nov 1, Mar 3, total 315 (up 101). COMMERCIAL BILLS Contracts traded: Nil. Open positions at October 7: Dec 40, Mar 39, Jun 10, total 89 (same). GOVERNMENT STOCK Mth Open H/L Last Vol Dec 8396 401/388 395 421 Contracts traded: 421. Open positions at October 7: Dec 1431, Jun 70, total 1501 (up 192). WOOL Mth Open H/L Last Vol Dec 645 645/645 645 3 Jan 660 660/650 650 18 Mar 665 666/665 665 18 May 701 702/686 690 16 Aug 710 710/710 710 4 Contracts traded: 59. Open positions at October 7: Oct 14, Dec 97, Jan 304, Mar 338, May 259, Aug 31, Oct 1, Dec 2, total 1046 (down 5). M-DAY BANK BILLS Mth Open H/L Last Vol Oct 8045 050/030 8040 67 Nov 8065 065/040 8040 110 Dec 8100 110/100 8100 45 Contracts traded: 222. Open positions at October 7: Oct 531, Nov 214, Dec 369, Mar 237, Jun 164, Sep 132, Dec 137, Mar 26, Jun 12, total 1822 (up 36). SYDNEY ALL-ORDS (half-points omitted) Prev. Mth close H/L Last Vol Dec 2229 2255/16 2227 2541 Contracts traded: 2541. Open positions at October 7: 4167. BARCLAY’S SHARE INDEX Mth Open H/L Last Vol Dec 3830 866/772 840 1339 Contracts traded: 1339. Open positions at October 7: Dec 1337, Mar 1, total 1338 (up 132).