BWFN3063

SEM A221

GROUP ASSIGNMENT
The total 25% marks for group assignment are segregated as following:

Weekly Review 1 – 3%
Weekly Review 2 –2%
Final Report 20%

Instruction: EACH GROUP WILL BE GIVEN FUTURES CONTRACT THAT SHOULD BE TRADED AT THE BURSA
MALAYSIA DERIVATIVES

ASSUME THAT YOUR GROUP HAS Max RM200,000 THAT CAN BE USED TO TRADE FUTURES CONTRACT.
YOU HAVE TO CALCULATE DAILY RETURNS STARTING:

- 16 November- 15 December 2022 (CRUDE PALM OIL FUTURES)

- 1 December 2022 – 31 December 2022 ( FOR KLCI FUTURES)

WEEKLY REPORT 1 and 2

 Discuss in detail your arguments about your trading. You have to explain your position before
entering into futures trading whether to long or short the contract.

 Specify the number of the contract

 observe daily market price for selected futures contract from official website of bursa malaysia
derivatives.
 Calculate daily gain/losses ( marking to market)- use spreadsheet(see page 45-46 in text book).
Also can find the explanation in youtube such as https://www.youtube.com/watch?
app=desktop&v=_jHRbMolQl0

 Calculate margin requirement (amount of initial margin). You can get the information from the
bursa or other sources.
 You have to keep track the market and alert with any news during trading period that can reflect
the price.
 Write a short report on your daily trading progress.
DEADLINES:

CPO Futures KLCI Futures

Trading Days Submission Date Trading Days Submission Date

Weekly Review 1 16 to 25 Nov 28 Nov 1 -9 Dec 11 Dec

Weekly Review 2 28 Nov-2 Dec 4 Dec 12-16 Dec 18 Dec

Rest of the 5-15 Dec No need to 19-30 Dec No need to

trading day submit, list all submit, list all
trading days in trading days in
final report final report

Final report 16/11– 15/12/ 2022 30 Dec 2022 1-31 Dec 2022 15 Jan 2023

FINAL REPORT SHOULD CONSIST OF THE FOLLOWING:

1. PRE-TRADING

- Discuss in detail your arguments about your trading. You have to explain your position before
entering into futures trading whether to long or short the contract. Support your decision with
fact and figures
- Specify the number of the contract
- you MUST use technical analysis ( for example moving average, chart, graf, etc) and
fundamental analysis ( eg. News, economic variable that reflect the underlying asset, policy
changes, etc) to support your decision.
- Example of creating chart for technical analysis: https://www.youtube.com/watch?
v=mcg_FqNI3-k

2. TRADING PERIOD

Discuss the daily market price as well as daily gain and losses (marking to market) for the whole
trading period (you can summarize weekly review 1, 2 and add the remaining trading days).
Please makesure you have 30 calender days ( 1 month) observations.Discuss the step taken by
your group based on the information (news) (**please be alert with the news) that arrived
during the trading period that can influence the price.

3. REPORT
 - Prepare a detail report about your trading.
- Your mark will not based on whether you make a profit or loss, but more on your discussion
about your expectation on the market and explanation about the trading, risk involved, market
anaysis etc.
- Please use the appropriate format of assignment ( should have page number, table of contents,
section and subsection, reference, appendices, etc)
- Report should NOT MORE than 30 pages including reference and appendices.
Notes:

1. Information about CPO spot market can be retrieved from Malaysian Palm Oil Board.
(www.mpob.gov.my)

2. Can use data stream (at library) to get information about KLCI index series ( spot prices). You also can
use free database using Yahoo Finance or investing.com

Group Matric number Futures contract (Will Remarks

be given by the
lecturer)

1 277704 FCPO Dec 22 Group 1 only 4

278849 members
278134
279106-lee Jian Wei

2 276950 FCPO Jan 23 Group 2-13,5

277398 members.
277693
278586
279361

3 279308 FCPO Feb 23

280125
280360
280908
281015

4 279373 FCPO March 23

279441
279916
279748
279646

5 277202 FCPO April 23

277686
 277888
278893
279041

6 280865 FCPO may 23

280042
281908
280532
279909

7 277142 FCPO June 23

278097
281150
278502
278933

8 279111 FCPO July 23

278988
278289
276858
277307

9 277601 FKLI Dec 2022

278998
279085
279158
280546

10 272936 FKLI Jan 2023

272826
272928
272849
270884

11 277471 FKLI March 2023

278266
277786
278169
289449-Mohamad Danial Azman

12 277017 FKLI June 2023

277058
281186
281618
281741
13 271019-Fadzilah FKLI Dec 2022
271030- Nurul Maizatul Faezah
272811-Mohammad Izzudin
273138-Norazarena
281535-Mohamad Haziq