KLOFFE'S KLSE CI Futures Weekly Market Commentary

MARKET MOVEMENT

The Kuala Lumpur Composite Index Futures (FKLI) was traded from a low of 701 to a high of 749, a difference of 48 index points. The week started off on negative sentiment when the ringgit weaken to a low of 3.875 . The February futures contract was pulled down to the 711 level.

However, statements by Tun Daim about opening more stakes for non-bumiputra added some spice to the market and the futures market rally at 726 level.

The trend reversed on Wednesday when fund managers were concern about the bail out troubled companies. The cash market Genting fell $2.10 which pulled down the cash market to close at 712.81 and the February Futures settled at the lowest of the week of 701.

The confidence restored by Datuk Seri Anwar on easing restrictions on foreigners' stakes in local firms on Thursday and Friday helped push both cash and futures market to close at 745.36 and 743.6 respectively.

Roll over activities contributed to a high volume week where total contracts traded for the week were 23,320 contracts, an daily average of 4,664 contracts. Total open interest stayed above 8,000 level.

MARKET OUTLOOK

Next week would be the beginning week for March futures and I believe the market would have a massive move when the results of the merger between RHBC and CAHB to be announced. However, the market pretty much depend on the foreign exchange market.

Resistance would be shown at 753, 762, and 780 while support would be at 700, 720, 735 levels. I expect the market to be consolidating which is neutral to bearish.

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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