KLOFFE'S KLSE CI FUTURES(FKLI)
WEEKLY MARKET COMMENTARY

May 29, 1998

Volume and Open Interest (1 year window)wpe1C.jpg (16230 bytes)

Daily Price Movements (20 day window)wpe1D.jpg (18151 bytes)



MARKET MOVEMENT

The Kuala Lumpur Composite Index  Futures (FKLI) was traded from a high of 569.0 to a low of 539.0, a different of 30 index points. The direction of the market was largely influenced by the sentiment of regional bourses especially Japan and Hong Kong.

Telekom and Tenaga, the two most market capitalization stocks shed which brought down the cash and futures market.

The reason of this unfavorable scenario was due to week regional sentiments. Hong Kong's Hang Seng Index dropped more than 600 points this week which closed below 9,000 level. Investors remained skeptical on the regional market as both South Korea and Japan's economy remain uncertain.

May futures closed low at 539.5, a premium of 1.26 index points at expiration on Friday. The June futures however, was 7.24 index points discount as market remain bearish. This is partly due to the political unstable of south asia as Pakistan had their five "successful" nuclear test in response to India's nuclear test.

To recap,  total contracts traded for the week were 21,686 contracts, an daily average of 4,337 contracts. The 20-day volatility stayed below 50% level. Total open interest stayed at 15,973 after May futures expired.

MARKET OUTLOOK

The market is likely to remain neutral to bearish. For June futures, resistance would be at 558, 544, and 536 while support can be seen at 508, 520, 526 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.
(mshu@tm.net.my)
Return to SHU's Corner Mainpage

This homepage is brought to you by: Geocities Logo
Geocities

© 1998 Shu Meng Chan
All Rights Reserved