KLOFFE'S KLSE CI Futures Weekly Market Commentary

KLOFFE'S KLSE CI FUTURES(FKLI)
WEEKLY MARKET COMMENTARY
DECEMBER 12, 1997

MARKET MOVEMENTThe KLCI Futures went up and down throughout the week with December Futures traded at its high of 710.0 on Monday and its low of 542.5 on Friday morning. The volume on the spot month contract for this week increased to 14,776 contracts from 12,968 contracts last week.

The market started with a strong upward trend on Monday when the Deputy Prime Minister of Malaysia Datuk Seri Anwar Ibrahim announced a tight economic measures to boost investor's confidence on last Friday afternoon, just 1 1/4 hour before the futures market close. However, the trend couldn't sustain for the four following days as profit taking and weak regional sentiment took place.

The total volume for the week stands at 15,007 as January Futures contract started picking up in the event of rolling over early on the last trading month of year 1997. Open interest stayed at a 5 digit level of 10,600.

MARKET OUTLOOK Given the weak regional sentiment, december futures may continue to be bearish and possible of basis point being widen to a huge discount. Support level for the underlying index fall at 565 level, and the volume for the futures contract for the week would break 15,000 level if the underlying index fall out of the support and resistence level. Roll-over and close book activities will take place prior to Christmas.

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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