KLOFFE'S KLSE CI Futures Weekly Market Commentary

MARKET MOVEMENT

The Kuala Lumpur Composite Index Futures (FKLI) was traded from a low of 265.0 to a high of 405.0, a different of 140 index points. The direction of this extremely volatile market was influenced by the "SHOCK" imposition of capital control announced on the first trading day of September.

Both cash and futures broke 300.0 resistance and continued to sky-rock after the 13% cash market plunge with panicking selling on Tuesday. Local institutions seem to buy the idea of capital control and foreign investors were trying to cover their short positions which push the market higher on Wednesday.

September futures settled at 394.0 on Friday, a premium of 30.53 index points compared to the underlying of 363.44.

To recap, total contracts traded for the week were 30,551 contracts, an daily average of 7,638 contracts.This is an evident of volatile market as the 20-day volatility stayed above 100% level. Total month end open interest stayed at 14,000 level.

MARKET OUTLOOK

The market will remain volatile due to the uncertainty effect of capital control . Resistance would be at 521, 450, and 421 while support can be seen at 349, 300, 233 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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