KLOFFE'S KLSE CI Futures Weekly Market Commentary

MARKET MOVEMENT

The Kuala Lumpur Composite Index Futures (FKLI) was traded from a low of 404.6 to a high of 447.4, a different of 42.8 index points. The direction of the market was largely influenced by the movement of Japanese Yen and concern over government policies to stimulate Malaysia's economy.

The Deputy Prime Minister announced that GDP growth was revised down to between -1 to -2% and inflation rate were revised to increase by 7-8%. The revision seem positive to the market as market participants believed that the futures and underlying market were oversold and the government is taking serious steps to revive the economy. On Tuesday, huge support were seen at 423.0 with over 1,000 lots waiting to buy in which market participants anticipated that the market was oversold.

July futures rallied on Thursday and Friday and roll over activities started actively 10 days before expiration.

July futures closed low at 447.0, a premium of 1.69 index points compared to the underlying of 445.31.

To recap, total contracts traded for the week were 24,983 contracts, an daily average of 4,997 contracts. The 20-day volatility stayed above 40% level. Total open interest stayed above 25,000.

MARKET OUTLOOK

The market is likely to be volatile with high liquidity. Resistance would be at 480, 462, and 451 while support can be seen at 438, 428, 410 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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