KLOFFE'S KLSE CI Futures Weekly Market Commentary

MARKET MOVEMENT

The Kuala Lumpur Composite Index Futures (FKLI) was traded from a high of 398.0 to a low of 353.1, a different of 44.9 index points. The direction of the market was largely influenced by the issues of downgrading of Malaysian stocks by rating agencies' and concerns over devaluation of Chinese Renminbi.

Both cash and futures broke 380 psychological support for the first time this week and continued sliding 5 days in a row. Just mild buying interest lifted August futures to close off low of 353.1

August futures closed at 355.4, a discount of less than 8.65 index points compared to the underlying of 364.05.

To recap, total contracts traded for the week were 13,429 contracts, an daily average of 2,686 contracts. The 20-day volatility stayed above 40% level. Total open interest stayed above 19,000.

MARKET OUTLOOK

The market is likely to be bearish as investors are awaiting GDP figures to be announced soon. Resistance would be at 410, 386, and 371 while support can be seen at 346, 337, 314 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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