FUTURES GSK closes firm

Press, 23 March 1988, Page 42

FUTURES GSK closes firm

• H r I i l ; ' Government tures see-sawed ybsterjday but ended on the high side for the day. ’ The i market j opened slightly stronger I but dipped about 3 p.m. when the i Reserve Bdnk [announced j it was 1 cutting back its , daily) cash j requirement from j $4O million to $3O million. The news had. been; expected for some time, [and dealers said it yras ■ the sharp dip in 'call rates over the .past few days that had caused the bank to finally act. j after [the i announcement the June Government Stock contract fell 1 about! 10 points, but it soon recovered [this ground as the I market realised I the announcement had been’ built [into prices for somel time, said the manager of Mair 'Astley Futures, Dr Brent Layton. | 11 - [ | I I ]' I “Once the market realised the 1 announcement j had been built into recent

II I : i . ' I prices it moved up again,” Dr Layton said. i At tile close!, the June contract was j 10 points ahead for the day. It had opened] 6 points stronger at 8698 and [traded between 8688 and 8708; finishing on its high. Volume was moderate to heavy with) a total of 2473 [ contracts changing hands. One Auckland dealer said a lot of people interpreted :the Reserve Bank announcement: as a buying [signal. ' . : “The) buying became quite) aggressive shortly after [ the announcement,” he said. He said the $lO million drop ■ was widely anticipated, but said that in the longer term the daily cash target could be expected to fall further.

“I [ guess in the long term | it will be like Australia and come back ! to zero,” he said. ; “The! liquidity situation is beginning to look quite

healthy for the Gov’ern- ) ment,” he said. ! [ “The - State Owned Enterprise payments appear to be on time and the Reserve Bank’s liquidity projections for the rest of the month, announced today, were down over all.” Bank bill futures also closed firmer yesterday. The April contract was 2 points firmer at the close, with a total of 202 lots changing hands. I • Trading in the Barclays share price index future market was not as bouyant as interest rate futures. The March BSI contract closed 49 points easier, and was at a discount! to the physical at the close. The March contract closed at 1990, a 16 point discount to the sharemarket. “The longs got a little frustrated with the Barclays and sold it down today,” Dr Layton said. He said there were! a number of buyers waiting at slightly lower levels than the contract finished, so the market is not likely to fall significantly in the short term.

Contracts traded: 34. ' Open positions at March 21: Apr 8, May 2, Jun 3, Sep 2,1 Dec 6, total 21 (up 9). 1 COMMERCIAL BILLS I Mth; Open H/L Last [Vol Contracts traded: nil. Open positions at March 21: Mar 10, total 10 (same). GOVERNMENT STOCK Mth Open H/L Last .Vol Jun 86.98 708/688 8708 :2438; Sep 87.16 733/710 8733 I 35 Contracts traded: 2473. . | Open positions at March 21: Apr 2, Jun 4138, Sep 21,7, itotal 4357 (up 1763). 1 WOOL

Contracts traded: 28. Open positions at March 21: Mar 35, May 318, Aug 130,' Oct 60, Dec 49, Jan 1, Mar 1, total 594 (down 72). 90-DAY BANK BILLS!

Contracts traded: 202. ! Open positions at March 21: Apr 484, May 101, Jun 348; Sep 306, Dec 243, Mar 33, Jun 19, Sep 7, total 1541 (down 36). SYDNEY ALL-ORDS I ! (half-points omitted) I f Prev. • ! I

Contracts traded: 1437. : Open positions at March 21: 6696. I BARCLAY’S SHARE INDEX Mth Open H/L Last i Vol Mar 2032 035/990 1990 109 Jun 2100 .100/090 2090 16 Contracts traded: 125. Open positions at March 21: Mar 552, Jun 18, Sep. 56,'total 626 (down 46).

SUS CONTRACTS Vol Mth . Open H/L Last Apr . 5205 223/129 5154 j 30 May 5291 291/291 5291 i 2 Jun ■ 5400 400/400 5400 1 2

Mth Open H/L Last 1 Vol Mar 630 630/630 630 j 24 Aug675 675/675 675 ! 1 Oct 680 680/680 680 I 1 Dec 685 685/685 685 ! I Mar 700 700/700 700 1 1

Mth Open H/L Last Vol Apr. 84.95 500/475 8490 152 Jun 85.85 585/580 8580 I 20 Sep 85.95 595/595 8595 ! 10 Dec 86.10 610/610 8610 i 10 Mar 86.20 620/620 8620 10

Mth close H/L Last Vol | Mar 1442 449/418 1424 1333 Jun 1467 465/438 1440 104