FUTURES Barclays slumps

Press, 28 January 1988, Page 28

FUTURES Barclays slumps

Share index futures slumped yesterday as the physical market hit a two year low. The March contract fell to 1786, against 1865 on Tuesday. Volume on the physical market was well up yesterday, mainly due to the Australian market reopening after a two day break. Mr Stewart Auld, a dealer for Mair Astley Futures, said share brokers he spoke to yesterday predicted the’ physical market will bounce in the next two to three days. “But futures indicate there may be more downslide to occur,” he added. He said the contract had entered unchartered territory, and most futures dealers were unsure which direction the market would take in the short-term. Interest rate futures had a good day yesterday, with the Government Stock contract reaching another high for the month. March GSK futures closed at 8573, after opening at 8557. Turnover was much improved at 777 contracts. Bank bill futures opened at 8316 and rose throughout the day to 8355, against Tuesday’s close of 8311. Mr Auld said yesterday’s bullishness was a turnaround

from the normal easing in interest rate futures towards the month’s end. He said the market had changed its perception of the liquidity ratio, and this had led to the bullishness. "The Reserve Bank has shown it is prepared to let the liquidity position go, so traders have gone from an uncertain perception to a positive one,” he said. Mr Auld said he had been advised that the feeling, especially in Wellington, was that liquidity would now ease in the short term. "Everybody predicted the wrong way,” he said. Trading’ in wool futures was dull yesterday. The manager of Mair Astley Futures, Mr Geoff MacDonnell said, “If the kiwi continues its down trend, wool futures could find the base that represents their low for the year, and move up from there.” SUS CONTRACTS Mth Open H/L Last Vol Feb 5022 022/022 5022 1 Mar 5200 200/200 5200 1 Contracts traded: 2. Open positions at January 26: Feb 10, Mar 42, total 52 (same). COMMERCIAL BILLS Contracts traded: nil. Open positions at January 26: Mar 1, Jun 10, total 11 (same).

GOVERNMENT STOCK Mth Open H/L Last Vol Mar 8558 573/555 573 777 Contracts traded: 777. Open positions at January 26: Mar 1696, Jun 160, Sep 119, total 1975 (down 155). WOOL Mth Open H/L Last Vol Mar 614 614/614 614 10 May 638 638/638 638 2 Contracts traded: 12. Open positions at January 26: Jan 10, Mar 301, May 309, Aug 51, Oct 25, Dec 26, total 722 (down 10).

Contracts traded: 248. Open positions at January 26: Feb 423, Mar 705, Apr 42, Jun 220, Sep 195, Dec 181, Mar 31, Jun 17, Sep 5, total 1819 (up 66). SYDNEY ALL-ORDS (half-points omitted) Prev. Mth close H/L Last Voi Mar 1280 289/270 1279 416 Contracts traded: 416. Open positions at January 27: 4579 (up 105). BARCLAY’S SHARE INDEX Mth Open H/L Last Vol Mar 1837 837/786 790 42 Contracts traded: 42. Open positions at January '26: Mar 281, Sep 50, total 331 (down 70).

90-DAY BANK BILLS Mth Open H/L Last Vol Feb 8295 327/295 327 130 Mar 8320 355/316 355 78 Apr 8380 410/380 410 25 Jun 8460 475/460 475 10 Sep 8500 500/500 500 4 Dec 8550 550/550 550 1