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Hang Seng futures take a breather

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IN spite of the frenzied activity in covered warrants yesterday, trading was relatively weak in Hang Seng Index futures.

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There were two issues on Hang Seng stocks (see Section 1, Page 3), but only 10,202 contracts traded in futures - 10,199 in June and three in July.

The cash market traded sideways, falling 41 points to 9,512, having risen 29 points on Tuesday.

June futures closed down 125 points to 9,515 to a premium of three points, in line with theoretical value, according to Jardine Fleming.

July was down 115 points to 9,530. Open interest trading in June was 31,998 contracts, against one contract in July.

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Implied volatility continued to plunge in index options. Jardine Fleming said activity centred on at-the-money options.

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