Futures stir as volume grows

THE futures market was slightly more active yesterday as volume picked up to 13,022 contracts.

October contracts closed 118 points lower at 9,320 on a volume of 11,836 contracts.

There was also some more activity in November contracts as people moved to roll over their positions early ahead of expiry next Thursday.

November contracts closed 120 points lower at 9,320 with 1,186 contracts traded.

Confirmed volume for Tuesday was 10,580 contracts and open interest was 34,368 lots.

The futures market traded in line with the Hang Seng Index staying with a 40-point range throughout the day.

Most of the activity came from local brokerages and local clients while the larger houses remained on the sidelines for most of the day.

There was some selling of futures towards the end of the day which reflected the hedging of some December 9000 options contracts sold to S G Warburg.

That set a slightly negative tone to the day and spooked some smaller investors who decided it was safer staying out of the market.

Options market volatility remains low and traders are not expecting any major breakout in the market in the next few days.