BSI consolidates gains

Press, 12 August 1989, Page 33

BSI consolidates gains

The Barclays share price index (BSI) contract consolidated its recent "massive” gains in the latter part of the week, said Mr Mark Thiele, of Egden Wignail and Company Futures, yesterday. The BSI-September contract closed at 2274 yesterday, a 69 point gain for the week and a 57 point premium to the physical index. Many traders felt that the BSI would surge back above the 2300 level, after the pause, Mr Thiele said. The change of Prime Minister had had no lasting effect, although futures were sold heavily when Mr Lange

announced his resignation. "It seems to be business as usual with no change in economic policy in the foreseeable future,” said Mr Thiele. With the Dow Jones index near its all-time high, the publication of key United States economic indicators over night would set the tone for Monday’s trading, he said. Interest rate falls had slowed this week with a disappointing Government stock tender being the main dampening news later in the week, Mr Thiele said. Interest rates paid for five-

year Government bonds in the tender averaged 12.24 per cent. Yields were higher than many had expected, he said. The September Government stock contract closed yesterday at 8773 (12.27 per cent) down 1 point on Thursday. Mr Thiele said that the GSC bull run was still intact and he predicted an attack on the 8800 (12%) level within the next few weeks. On the Sydney Futures Exchange, the September share price index contract was 20.1 points higher at 1734.2 from Thursday’s 1714.1 close.