KLOFFE'S KLSE CI Futures Weekly Market Commentary

MARKET MOVEMENT

The Kuala Lumpur Composite Index Futures (FKLI) was traded from a high of 485 to a low of 466.3, a different of 18.7 index points. The poor volume shown on both cash and futures are mainly caused by lack of direction.

The cash market continued to be propped by local institutions. However, selling pressure were seen as many foreign institutions were still unclear with the status of a majority of these accounts.

November futures settled at 470.5 on Friday, a premium of more than 8.94 index points compared to the underlying of 461.56.

To recap, total contracts traded for the week were 4,061 contracts, an daily average of 812 contracts.The 20-day volatility stayed below 40% level. Total month end open interest stayed at 2,200 level.

MARKET OUTLOOK

The market will remain neutral. Limited activities will be seen as open interest decreases due to lack of direction.The huge premium might suggest risk free money making arbitrage opportunities. Resistance would be at 495, 482 and 476 while support can be seen at 466, 460, 450 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