KLOFFE'S KLSE CI Futures Weekly Market Commentary

MARKET MOVEMENT

The Kuala Lumpur Composite Index Futures (FKLI) was traded from a high of 615.0 to a low of 528.0, a different of 87.0 index points. The week started off quite as investors were off for a long week end. The underlying stocks were bearish due to corporate failure as Investors were concerned about the suspension of Omega securities and the health of other fragile corporations. The May Futures close at 601.0 on Monday.

With a huge discount, the May futures continued to stay at negative territory on Tuesday. The futures settled below 600 level at 577.2 with 2,528 contracted change hand.

On Wednesday, the futures market plunged to 550 level as investors were worried about Indonesia's student riot. Regional bourses reacted accordingly as Hang Seng, Nikkei and STI plunged to their 3 month low. The May futures closed at 551.0.

On Thursday, the futures market were on a roller coaster ride with 7,449 contracts transacted.It dropped to a 3 month low of 528.0 and rebounded in the afternoon session as Malaysia's trades figures showed a RM3.72 billion trade surplus. It closed at 573.0, a discount of only 13.83 index points.

To recap, total contracts traded for the week were 18,096 contracts, an daily average of 3,619 contracts. The 20-day volatility jumped to mid 40% level. Total open interest stayed above 18,000 level.

MARKET OUTLOOK

The market is likely to remain bearish.

For May futures, resistance would be at 613, 589, and 574 while support can be seen at 513, 538, 549 levels. I expect the market outlook to be bearish and more liquidity are expected in this coming week investors anticipate a hike in interest rates and tighter monetary supply.

DISCLAIMER
The weekly market commentary has been compiled by Shu, Meng Chan (article writer) for private views only. The weekly market commentary articles are being released for the interest of Shu, Meng Chan only and should not be considered investment advice. There is no warranty or representation expressed or implied by Shu, Meng Chan as to the the accuracy or completeness of the commentary herein. The content of the articles will not reflect the general view point of the described (KLOFFE)Futures Exchange. Shu, Meng Chan will not be liable for any action taken by viewers upon reading Shu's Corner KLOFFE's Weekly Market Commentary.

(mshu@tm.net.my)
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