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Futures test 10,000 but fail to hold on

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A NEW test on 10,000 failed to hold yesterday despite local market support.

Optimism on overnight buying in the United States pushed the December future through 10,000 to a high of 10,015 intra-day.

The contract failed to hold the level and slunk back to 9,990 on the close. On the day the contract was up 100 points and a premium over the cash of 63 points.

The heavy premium over the cash throughout the day was taken as a positive signal by brokers with the growing expectation 10,000 will be broken today.

January futures rose 105 points to 10,040, a premium over the cash of 113 points.

Volume was modest at 13,624 contracts. The activity was split with 12,700 contracts in December and 924 in January. In index options there was modest activity with a total of 2,551 lots traded.

Jardine Fleming said bulls dominated the options market and out-of-the-money calls were active.

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