KLOFFE'S KLSE CI Futures Weekly Market Commentary

MARKET MOVEMENT

The Kuala Lumpur Composite Index Futures (FKLI) was traded from a high of 460.0 to a low of 444.2, a different of 15.8 index points. The direction of the market was largely influenced by the movement of Japanese Yen.

Weak sentiment remained in the region eventhough US President Bill Clinton made a visit to China. Locally, the appointment of Tun Daim as special function minister didn't bring any effects to the equity and futures market.

June futures closed low at 447.7, a premium of 2 index points compared to the underlying of 445.67. Roll over activities dominated the futures market as nearer to June contract expiration.

To recap, total contracts traded for the week were 23,630 contracts, an daily average of 4,726 contracts. The highest daily open interest was achieved on Thursday with 32,570 contracts traded. The 20-day volatility dropped below 40% level. Total open interest stayed above 28,000.

MARKET OUTLOOK

The market is likely to remain neutral. Resistance would be at 463, 455, and 452 while support can be seen at 432, 440, 443 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