Stocks in Oracle Financial Services Software Ltd gain 8 per cent after a higher-than-expected response to its share sale squeezes out short positions in the futures market, dealers say.
Oracle, majority owned by Oracle Corp, attracted demand of nearly four times its share sale of 4.4 million shares, according to exchange data, surprising investors who had shorted the stock for arbitrage in anticipation of tepid demand.
Oracle's May futures saw a reduction of 150,000 shares, or 16.5 per cent of the outstanding total, as of 11.10 a.m., indicating covering of short positions.
Copyright: Thomson Reuters 2013
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