THE futures market yesterday saw the biggest rise in points terms since 1987, with evidence emerging of a short squeeze which could prove expensive to some investors if the market stays up until the end of the month.
The February index contract rose 308 points to 6,155, a rise of 5.3 per cent that took it 106 points above the cash index.
The March contract closed at 6,150, up 298 points, on 1,641 lots, and the June future was at 6,145, up 305 points, on 141 contracts.
A total of 9,726 contracts changed hands yesterday.
Short-covering by major institutional investors was a significant factor behind yesterday's rise, said futures dealers.
Dealers taking short positions agree to sell contracts that they do not have, on the assumption that the market will fall before the sell date.