KLOFFE'S KLSE CI Futures Weekly Market Commentary

BULL CONTINUED AFTER TWO WEEKS OF CONSOLIDATION!

MARKET MOVEMENT

The Kuala Lumpur Composite Index Futures (FKLI) was traded from a low of 733.5 to a high of 795.0, a different of 61.5 index points. The direction on both cash and futures are mainly caused by anticipation of good news to be announced by Prime Minister and in Malaysia.

The cash market continued to be supported by local institutions and retail players as they anticipated a uptrend after two weeks of consolidation and digestion.

In the futures market, activities have been lacking due to the frenzy activity on the political linked and second third liners. The futures market was looking for direction in cash market as it traded narrow the cash-futures spread.

For June futures, it closed at 781.0, a premium of 8 index points.

To recap, total contracts traded for the week were 12,125 contracts, an daily average of 2,425 contracts.The 20-day volatility stayed below 40% level. Total month end open interest stayed at 3,600 level.

MARKET OUTLOOK

The market will remain neutral to bullish. However, watch out for any FOMC announcement to be held on 30 June 1999. Resistance would be at 800, 805 and 820 while support can be seen at 771, 762, 754 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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