FUTURES BSI highly strung

Press, 13 May 1988, Page 13

FUTURES BSI highly strung

The Barclays share index futures contract slipped 45 points yesterday as falls in offshore bourses undermined confidence in the local sharemarket.

The volatility in the New Zealand sharemarket in afteroon trading also underpinned the contract, dealers said.

At the close of trading the June BSI contract was well below 1900 at 1865. Volume in the contract has picked up however, with 122 lots traded yesterday.

The increase in volume may signal that investors expect a sharp dip in the physical contract in the near future, dealers said.

Interest rate futures performed well yesterday at a time when offshore markets slumped after fears of worldwide interest rate hikes. United States comments sparked a flurry of trading in interest rate contracts there and sentiment was negative. “Before, the trend down had been all speculation but there was some factual backing to yesterday’s moves,” one dealer said. “That’s why all markets are extremely nervous.” But in New Zealand, Government stock futures held their ground, partly

in response to a good food price index figure.

The index recorded a 0.1 per cent rise in the price of food for the month and the country now has an annual food price increase of 6.3 per cent, below recent expectations.

Another factor in steady GSK futures prices was the closing of the Goverment’s $3OO million stock tender, the results of which are due today. The food price figure was announced only half an hour before the tender closed so it was unlikely to have affected bids. Yields in the tender are expected to be lower, dealers said. The June Government stock contract closed a mere four points easier at 8697 on moderate volume of 1325 contracts. Dealers said that if the contract breaks through 8692 today it may have a run down. On the upside, a move through 8700 could see it rise substantially.

“The contract is in a range that it has been for quite a while and that normally means that when it does break out it moves a long way,” one dealer said.

In Sydney, June share price index futures closed 12 points higher at 1368

SUS CONTRACTS

Contracts traded: 15. Open positions at May 11: Jun 282, Jly 3, Sep 6, Dec 7, total 298 (up 84). COMMERCIAL BILLS Mtn Open H/L Last Vol Contracts traded: Nil. Open positions at May 11: Jun 10, total 10 (same). GOVERNMENT STOCK

Contracts traded: 1366. Open positions at May 11: Jun 6449, Sep 483, total 6932 (up 383). WOOL

Contracts traded: 24. Open positions at May 11: May 73, Aug 126, Oct 64, Dec 53, Jan 1, Mar 3, total 320 (down 6). 90-DAY BANK BILLS Mth Open H/L Last Vol Jun 8448 460/435 8450 210 Jly 8500 500/490 8492 23 Contracts traded: 233. Open positions at May 11: Jun 1528, Jly 158, Sep 361, Dec 304, Mar 83, Jun 19, Sep 7, total 2460 (down 534). SYDNEY ALL-ORDS (half-points omitted) Prev. Mth close H/L Last Vol Jun 1356 368/332 368 1044 Contracts traded: 1044. Open positions at May 11: 4984 (up 126). BARCLAY’S SHARE INDEX Mth Open H/L Last Vol Jun 860 875/846 1865 122 Contracts traded: 122. Open positions at May 11: Jun 371, Sep 46, total 417 (up 36).

Mtn Open H/L Last Vol Jun 4645 771/645 655 10 Jiy 4848 848/848 848 3 Dec 5225 255/255 255 2

Mth Open H/L Last Vol Jun 8699 702/694 86971325 Sep 8730 733/725 8725 41

Mth Open H/L Last Vol May 637 637/635 636 21 Aug 655 . 655/655 655 1 Oct 670 670/670 670 2