KLOFFE'S KLSE CI Futures Weekly Market Commentary

MARKET MOVEMENT

The Kuala Lumpur Composite Index Futures (FKLI) was traded from a low of 521.1 to a high of 570.0, a different of 48.9 index points. The direction of the market has largely depend on the developments in Indonesia. The May Futures close at 542.0 on Tuesday.

With a huge discount, the May futures stayed at negative territory on Wednesday. The futures settled at 525.1.2 with 3,705 contracted transacted.

On Thursday, the futures market saw a 3 month record low of 521.1 level as investors were worried about Indonesia's tension situation. Regional bourses reacted accordingly as Hang Seng, Nikkei and STI plunged to their 3 month low. However, both futures and cash market were sparked by technical rebound and short covering late in the afternoon. The May futures managed to close at 550.0.

On Friday, the futures market closed higher at 556.9 probably due to ringgit strengthening from 3.9175 to 3.77 level, the huge discount was cut to less than 10 index points.

To recap, total contracts traded for the week were 16,017 contracts, an daily average of 4,004 contracts. The 20-day volatility stayed above 40% level. Total open interest jumped above 23,000 level.

MARKET OUTLOOK

The market is likely to remain bearish. For May futures, resistance would be at 612, 584, and 571 while support can be seen at 500, 528, 542 levels.

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.

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