FUTURES BSI contract takes beating

Press, 1 December 1987, Page 51

FUTURES BSI contract takes beating

The Barclays Share Price Index futures contract suffered as the physical took another beating yesterday. Mr Geoff McDonnell of Mair Astley Futures said the market looks set today to challenge its 18 month low. "There’s no buying interest,” he said. “Only 70 contracts were traded today.” The December contract closed yesterday at 2053, a huge 115 point discount to the physical. Government Stock and 90-day bank bills were sold down yesterday on the back of fears that interest rates may firm if the Reserve Bank decides to intervene on money markets, Mr McDonnell said. He said the Reserve Bank may tighten liquidity through its daily open market operations, but this will take no account of the small demand for borrowings ■ at the moment. The lack of demand is a catalyst for lower interest rates, Mr McDonnell said. Nothing happened on the U.S. dollar futures market. This was despite the easing of interest rates and the strength of the NZ dollar against the U.S. currency. Mr McDonnell said an unknown quantity — offshore confidence in New Zealand — could see the kiwi strengthen further against the U.S. dollar. “If offshore investors perceive New Zealand as a country with political stability, we may see an influx of foreign invest-

ment here,” he said. Wool futures look like having a big drop, in line with the strength of the kiwi, Mr McDonnell said. He said the January and March, 1988 contracts fell 10c yesterday and this was indicative of the lower wool prices at auction. SUS CONTRACTS Mth Open H/L Last Vol Dec 15732 732/470 504 272 Contracts traded: 272. Open positions at November 27: Dec 402, Mar 2, total 404 (up 1). COMMERCIAL BILLS Contracts traded: Nil. Open positions at November 27: Dec 40, Mar 39, Jun 10, total 89 (same). GOVERNMENT STOCK Mtfi Open H/L Last Vol Dec 8472 472/464 468 277 Mar 8506 508/506 508 16 Contracts traded: 293. Open positions at November 27: Dec 2635, Mar 82, Jun 70, total 2787 (down 141). WOOL Mth Open H/L Last Vol Jan 662 662/655 655 10 Mar' 690 690/682 682 23 May 710 710/700 700 8 Contracts traded: 41. Open positions at November 27: Dec 76, Jan 285, Mar 350, May 315, Aug 34, Oct 1, Dec 2, total 1063 (down 5). 90-DAY BANK BILLS Mth Open H/L Last Vol Dec 8300 300/205 294 46 Jan 8300 310/300 305 24 Mar 8350 350/345 345 8 Contracts traded: 78. Open positions at November 27: Dec 811, Jan 337, Feb 80, Mar 350, Jun 205, Sept 165, Dec 181, Mar 27, Jun 12, total 2168 (down 26). SYDNEY ALL-ORDS (half-points omitted) Prev. Mth close H/L Last Vol Dec 1321 344/285 292 1249 Mar — 302/302 302 35 Contracts traded: 1284. Open positions at November 27: 8745. BARCLAYS SHARE INDEX Mth Open H/L Last Vol Nov 2165 165/053 053 73 Contracts traded: 73. Open positions at November 27: Nov 389, Mar 14, total 403 (up 42).