HANG Seng cash and futures indexes traded sideways near par yesterday while implied volatility continued to rise to its highest level in two weeks.
The cash market closed down 121.66 points at 9,354.98.
In index futures, the May contract dropped 105 points to 9,415, giving a premium of 60 points over the cash index, and June was down the same number of points to 9,415.
After a series of gains in the Hang Seng Index from below 9,000, dealers said many investors were taking profits at 9,500.
The May futures traded in a tight band between 9,515 and 9,360 on a turnover at 15,152 contracts. Open interest in May stood around 31,497 lots and in June it was about 2,137.
Some investors were hugging the sidelines awaiting the outcome of airport talks due to start today.
