HONG Kong's derivative markets had their busiest day on record yesterday as foreign and local investors snapped up futures and options.
Combined turnover on the two exchanges hit $7.27 billion - almost double the $3.72 billion worth of business on the spot market.
The frenetic activity in the futures market helped lift the cash index to a new high - the second successive record day - and the 26-point premium close on October contracts signals bullish expectations for today.
Sassoon Securities assistant general manager Michael Ng Wai-ming said: ''People are now saying the next resistance is not 8,000 but 10,000, and I would not be surprised if it breaks 10,000 by the year end.'' Early estimates show 14,490 October contracts were traded, and 14,846 contracts in total.
For options, 7,400 put options were traded at a rate of 1,421 contracts. In total, 40,069 options were traded.
SBC Derivatives salesman James Vinall said: ''Clients have been quite willing to sell put options, believing the market will not go down below 7,400 - or 7,500 even - before the end of October.