HANG Seng index April futures lifted 130 points yesterday to 8,690, a premium over the cash of 29 points and up two per cent on the week.
Turnover was relatively heavier at 11,769 contracts in April and 27 contracts in May. During the week the average has been about 8,000 to 8,500 contracts.
May futures closed at 8,728.
Jardine Fleming said: 'The market showed an accumulation pattern in the lead-up to the Easter holiday.' There was strong buying at the end of trading when stop-buy orders flooded in at 8,720 and squeezed the market to a high of 8,750. Profit-taking took the market below 8,700 at the close.
JF said the options market saw active trading in near-the-money options. Bears dominated the morning session and took implied volatility up to 30 per cent.
Premium sellers got busy during the afternoon to take the yardstick to 22.5 per cent at the close. Since the beginning of the month, front-month implied volatility has dropped almost eight percentage points.
