KLOFFE'S KLSE CI Futures Weekly Market Commentary

BULL CONTINUED TO POWER UP WITH HIGH VOLUME!

MARKET MOVEMENT

The Kuala Lumpur Composite Index Futures (FKLI) was traded from a low of 499.6 to a high of 552.9, a different of 53.3 index points. The direction on both cash and futures are mainly caused by anticipation of rising market and high liquidity in Malaysia.

The cash market continued to be supported by local institutions and retail players as they anticipated a sustainable uptrend.

In the futures market, techicians (technical analyst) were basically in the losing end as the uptrend was extremely endured. The downside on Thursday due to foreign rating agencies' downgrades were being digested on Friday.

For December futures, it closed at 552.0, a premium of 24.74 index points.

To recap, total contracts traded for the week were 7,665 contracts, an daily average of 1,533 contracts.The 20-day volatility stayed below 40% level. Total month end open interest stayed at 2,500 level.

MARKET OUTLOOK

The market will remain neutral to bullish. However, watch out for minor withdraws. Resistance would be at 586, 566 and 559 while support can be seen at 506, 526, 539 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.

(mshu@tm.net.my)
Return to SHU's Corner Mainpage