BSI up on Dow influence

Press, 27 June 1989, Page 25

BSI up on Dow influence

The Barclays share price index futures contract (BSI) firmed yesterday in response to the Dow Jones average gaining almost 50 points to a post-Crash high on Wall Street on Friday. However, a futures dealer described the BSl’s performance as weak considering the Dow Jones movement. The Australian sharemarket was also quieter than expected given the gain by the Dow. If it had been higher then the New Zealand sharemarket would also have been stronger, the dealer said. The Australian response may have been muted because of a number of companies “going around the drain,” the dealer describing this as a new Australian financial term. Doubts over Hooker Corporation, the finding against Mr Alan Bond by the Australian Broadcasting Tribunal, and the suspension of Bell Resources were negative influences. The June BSI premium to the physical narrowed to six points with the close-out tomorrow, and the September premium held a 61-point margin. On the Sydney Futures Exchange, the June share price index contract fell 4.0 points to 1519 from Friday’s 1523 close. About 930 lots were dealt.