KLOFFE'S KLSE CI Futures Weekly Market Commentary

MARKET MOVEMENT

The Kuala Lumpur Composite Index Futures (FKLI) was traded from a high of 351.9 to a low of 308.0, a different of 43.9 index points. The direction of the market was largely influenced by the concerns over devaluation of Chinese Renminbi and bad corporate earnings of heavy weights. Telekom and TRI both announced worse than expected earnings which dampened both markets.

Both cash and futures broke 350 psychological support for the first time this week and continued sliding for half of the week. Just mild buying interest lifted August futures to close off low of 308.0.

August futures closed at 320.9, a discount of 7.08 index points compared to the underlying of 327.98.

To recap, total contracts traded for the week were 18,113 contracts, an daily average of 3,623 contracts. The 20-day volatility stayed above 40% level. Total open interest stayed above 20,000.

MARKET OUTLOOK

The market is likely to be bearish. Resistance would be at 363, 341, and 331 while support can be seen at 309, 297, 276 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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