Futures dip on mild profit-taking

MILD profit-taking in moderate trading took the Hang Seng Index August future down 45 points to 9,555 yesterday.

Overall turnover was 11,121 contracts, with 1,355 in September, indicating there might be early roll-over activity taking place.

For a change, the index traded in a relatively tight 100-point range in the day. Dealers expect interest rates to go up today but do not expect it to affect stock market sentiment too strongly.

The September future closed down 45 points at 9,550.

There was modest trading in index options, with 1,598 lots changing hands. Implied volatility in the front month returned to normal levels of around 28 per cent, having dipped to 24 per cent in the week.

Jardine Fleming said: ''Activities in the options market were concentrated on out-of-the-money options.'' Premium sellers sold September 9,800 calls and December 8,600 puts.