KLOFFE'S KLSE CI Futures Weekly Market Commentary

MARKET MOVEMENT

The Kuala Lumpur Composite Index Futures (FKLI) was traded from a high of 654.0 and a low of 590.0, a different of 64.0 index points. The week started off slow as investors were concerned about the performance of underlying stocks and weak sentiments on regional bourses. On Monday, the April futures contract resided at the 647.0 with only 725 contracts transacted.

The April futures continued to trade at almost 20 points discount as players may be discounting it for the bad debt and corporate failures news. The futures settled at 635.0 with 2,045 contracted change hand.

On Wednesday, both cash and futures market continued to slide as investors were pessimised with the economic outlook of the region. Both market ended marginally lower to 644.62 and 618.0 for cash and futures market respectively.

On Thursday and Friday, the futures market continued the losing streak eventhough there was some late afternoon buying interest at 600.0 on Friday. The FKLI April Futures closed the week at 595.0, a discount of 33.78 index points.

To recap, total contracts traded for the week were 18,433 contracts, an daily average of 3,687 contracts. The 20-day volatility dropped to mid 20% level. Total open interest stayed above 20,000 level, the highest recorded level.

MARKET OUTLOOK

The market is likely to remain bearish. However, if the cash market stays above 600 level, probably the futures market would have some uptrend to close up the distance of huge discounts.

For April futures, resistance would be at 606, 618, and 642 while support can be seen at 558, 576, 582 levels. I expect the market outlook to be neutral to bearish and more liquidity are expected as roll over activities would be heating up in the coming week.

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)
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