Poor finish robs gains in November futures
NOVEMBER futures closed down 68 points at 9,732 points yesterday amid a lack of Hong Kong market incentive.
After trading at a premium to the cash for most of the day's business, the contracts nevertheless closed at a 17 point discount over the cash.
Brokers said the market consolidated after the gains earlier this week and November futures started to lose steam after opening higher at 9,820 in the morning.
The index continued to drop in the morning and closed at 9,740 points, a five point premium over the cash.
According to W.I. Carr, Hong Kong punters pushed the November contracts to 9,840 after the opening. Fimat sold heavily above the 9,800 level and further dropped to 9,750 by 11am , it said.
The index dropped to the day's low at 9,730 near the close despite the strong performance of the Nikkei.
A total of 13,379 contracts with an underlying value of $6.39 billion were traded yesterday.
November contracts saw a volume of 11,875.
December contracts closed at 9,775 points, or 40 points down with 1,504 contracts traded.
Trading of both the cash and the future markets was dull and directionless yesterday.
Rolling over was relatively active with over 1,000 rolls traded.
Normura and Fimat were the major long rollers and rolls were traded at a premim of 20 points to 35 points, according to W.I. Carr.
As for options, trading was also quiet as the futures market was directionless.
Activity concentrated on the 75 times buying of November 9,800 calls and 60 times buying of November 10,000 calls.
Mid-term bears also looked at December 9,000 puts and 9,400 puts.
The former saw 103 lots traded while the latter had 124 lots.
A total of 1,155 options were traded.
Trading for stock options was very quiet yesterday, except for that of Hongkong Telecom options after the utility announced its interim result.
A total of 1,728 Hongkong Telecom options were traded with activity focused on November 14 calls and November 14 puts.