KLOFFE'S KLSE CI Futures Weekly Market Commentary

MARKET MOVEMENT

Regional weak sentiments sent most regional bourses to a new low record. Fear of the repayment capabilities for short term debts and banking failure caused turbulent on the currencies of the region. Lead by Indonesian Rupiah, Malaysian Ringgit, Thai Baht, Singapore dollars, and even Australian dollars plunged to the darkest abyss ever in the history. Furthermore, the budget by Indonesia and political future of President Suharto did not favour the investor's sentiment which shadowed the region.

The Malaysian Ringgit dropped to a record intraday low of 4.885 which made the futures stayed at discount.

On Friday, the ringgit and regional currencies managed to recover slightly when the concerned parties intervened respectively. The futures managed to recover from an intraday low of 466.1 and closed at 483.1. Total contracts traded for the week were 9983 contracts which increased 120% from the previous week. Open interest climbed to 9335 as investors started opening new positions for this year.

MARKET OUTLOOK

Regional sentiments remain weak. Investors are expected to wait for the concerned parties to react before they jump into the heavy broken fleet. The futures market is expected to trade at a discount to the underlying at a range of 450 to 540 levels. Volume and open interest are expected to increase.

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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