KLOFFE'S KLSE CI Futures Weekly Market Commentary

MARKET MOVEMENT

The Kuala Lumpur Composite Index Futures (FKLI) was traded from a high of 605 to a low of 547, a difference of 58 index points. The heavy volume week was made possible by a relatively good review on the Malaysian economy by IMF Managing Director Michel Camdessus and a reiteration that Malaysia does not need an IMF bailout. The not only gave a boost to value of ringgit , but it also helped stocks from getting out of record lows region.

On the Kuala Lumpur Stock Exchange, tighter measures on it's brokers seem acceptable to investors and the overall market. The KLCI soared 40 plus points to close at 589.08 on Monday.

However, profit taking activities and lack of confidence push down the cash and futures market on Thursday and Friday. The ringgit close at 4.51 level and KLIBOR rate touched at a sky high of 10.06% which hurt cash and futures to close at 558.57 and 559 respectively on Friday.

Total contracts traded for the week were 21,074 contracts which increased 56% from the previous week. Open interest climbed to a record level of 15,131 as investors started rolling over their position 2 days before spot month contract expires.

MARKET OUTLOOK

Festive season is just around the corner and local bourses will be close for about a week. Selling pressure are likely to trigger as investors wanted to protect their profits from any unforseen incidents within the 1 week break.

February 98 contract is expected to be traded at the range of 517 to 583. Happy Chinese New Year and Selamat Hari Raya

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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