FUTURES BSI heavily traded

Press, 6 September 1989, Page 43

FUTURES BSI heavily traded

The Barclays share price index contract (BSI) for September was heavily traded yesterday and finished towards its low at 2477. The premium to the physical slipped 4 points to 22. The BSI opened stronger and rose in response to the firmer physical market, but when shares fell in the late morning the contract was pulled down by profit-taking and stop-loss orders, said one trader. Arbitrageurs were also active buying the futures and selling physicals. Opinion was mixed on the BSl's direction and this generated strong two-way business. Although he thought the contract’s intermediate longterm trend was up, the dealer said that yesterday’s heavier volume and the finish towards the low plus the lower tops of recent rallies were all indications of increased plyThe September bank bills contract (BBC) weakened further yesterday falling through the 13 per cent level on above-average volume. Cash rates were still squeezing the BBC The September Government stock contract finished steady in a continuation of its directionless trading of late. Best month August was the best month for trading futures and options on the New Zealand Futures Exchange with the value of trades being worth more than $15.5 billion. The previous record month was 14 months ago, June, 1988, when the value of lots traded was 57.38. Increased volatility in interest rates, renewed interest in the New Zealand sharemarket and sharp growth in the emerging options market all contributed to the increased trading, according to the exchange’s managing director, Mr Len Ward.