Malaysia Derivatives Exchange >>> FKLI and FCPO

FKLI Down In Tandem With Cash & Regional Markets THE FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) futures contracts on Bursa Malaysia Derivatives closed mostly lower today, dealers said.

While December 2010 rose six points to 1,504, January 2011, March 2011 and June 2011 decreased 6.5 points each to 1,506,1,505 and 1,504 respectively. Turnover rose to 5,497 lots yesterday compared with 3,416 lots on Tuesday,
Open interest stood at 22,317 contracts from 23,741 contracts previously.

Profit Takings & Lower Data Sinks CPO
CPO succumbs to broad-based selling as investors continued to take money off the table following the previous day’s rally to the market’s highest levels in more than two years coupled with news of lower exports and lack of demand, dealers said.
Traders opted to book profits and square off positions ahead of the year-end holidays, following Tuesday's intraday rally.

The benchmark February contract on the Bursa Malaysia Derivatives ended MYR11 lower at MYR3,669 a metric ton, after a volatile trading session with prices swinging in a range of MYR3,609-MYR3,702.

ANALYST / DEALER QUOTES

"Output for the first 15 days in many parts of peninsular Malaysia has plummeted. That along with weather issue will be the catalyst for another rally in palm oil prices."

"The weaker export numbers were another factor that drove palm oil prices lower," said a Kuala Lumpur-based trading executive.

"Any dip (in the palm oil market) would be an opportunity to buy."

Open interest on the BMD was 87,918 lots, versus 88,997 lots Tuesday. One lot is equivalent to 25 tons. A total of 20,825 lots of CPO were traded versus 24,l80 lots Tuesday.

HAPPY TRADING