KLOFFE'S KLSE CI Futures Weekly Market Commentary

MARKET MOVEMENT

The Kuala Lumpur Composite Index Futures (FKLI) was traded from a high of 490.0 to a low of 432.0, a different of 58.0 index points. The direction of the market was largely influenced by the movement of Japanese Yen.

The Japanese Yen has dropped to a 8 year low of 146 Yen/USD before rebounded to a comfortable zone of 135 - 136 level.

Weak sentiment surrounded the region as World Bank noted a depression outlook for Asia countries.

June futures closed low at 465.5, a discount of 2 index points compared to the underlying of 467.61. The lowest closing price for the spot month contract of 436.5 was recorded on Tuesday. the market rebounded as Federal Reserve propped up the Japanese Yen to help weak regional currencies.

To recap, total contracts traded for the week were 30,700 contracts, an daily average of 6,140 contracts. The highest daily volume was achieved on Friday with 8,557 contracts traded. The 20-day volatility exploded above 65% level. Total open interest surged above 30,000.

MARKET OUTLOOK

The 3% dropped in BNM's FOREX reserve released on Friday evening and development of G7 meeting might impact the movements of both cash and futures market next week.

The market is likely to remain neutral to bearish. Resistance would be at 509, 486, and 480 while support can be seen at 416, 439, 450 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)
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