KLOFFE'S KLSE CI Futures Weekly Market Commentary

MARKET MOVEMENT

The Kuala Lumpur Composite Index Futures (FKLI) was traded from a high of 335.4 to a low of 296.3, a different of 39.1 index points. The direction of the market was largely influenced by fragile situation in Russia, weak figures of Malaysia 2Q GDP and restless HK government in proping up both stock and futures markets.

Both cash and futures broke 308.0 support and continued to plunge after the announcement of 6.8% GDP contraction for second quarter on Thursday evening and futures volume were reacting according to the weak sentiment.

August futures settled at 303.5 on Friday, a premium of 0.59 index points compared to the underlying of 302.91. However, the September futures closed at high of 309.9 due to short covering activities and long weekend uncertainty.

To recap, total contracts traded for the week were 31,095 contracts, an daily average of 6,219 contracts. The 20-day volatility stayed above 50% level. Total month end open interest stayed at 15,000 level.

MARKET OUTLOOK

The market is remain volatile due to long weekends. Resistance would be at 350, 330, and 318 while support can be seen at 301, 289, 273 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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