FBMKLCI FUTURES

KENANGA FUTURES SDN BHD Company No. 353603-X DAILY PREVIEW

June 8, 2023
FBMKLCI Futures daily chart Preview
Fundamental
Expect futures to remain weak today on continued selling interest after overnight
U.S. stocks market extended its lacklustre performance and in the absence of
fresh local buying catalyst while a potential of bargain buying following rebound in
crude oil prices might cushion the selling pressure. Overnight leads, U.S.
equities finished mixed, with tech stocks slumping, as a dearth of major earnings
and economic news turned the market’s focus to what the Fed will do about
interest rates when policymakers meet next week. On the external front, Asian
stock markets were mostly steadier on Wednesday amid growing expectations
that China will step in to stimulate its economy after sluggish trade data and as
overnight gains on Wall Street aided brighten the mood while Japan struggle for
traction as sentiment turned edgy after recent rally. Back home, the FBM
KLCI pared its earlier gains to close lower, weighed by persistent selling pressure
by foreign funds due to a lack of buying interests ahead of the state elections and
the stability of the local political landscape along with weaker China economic
data. At the closing, the index dropped 4.52 points at 1,378.65 with top losers for
the day were IHH, SDPL, PCHEM, AXIATA and HLBK shares. Futures to cash
basis weakened to 3 points discounts from 2.5 points discounts..

Technical
Futures opened on a front foot echoing overnight gains on Wall Street but the
uptrend was short-lived and spent most part of the session below its overnight
level. The May futures contract declined 5 points to end at 1,375.5 tracking
weakness in the underlying cash market, forming a short black bodied candlestick
pattern with extended upper and long bottom shadow, indicating bears dominated
the session but bulls managed to pulled the price higher to close off its intraday
low. On the technical perspective, MACD indicator issue a selling signal while RSI
indicator remained at an oversold region. Hence, expect futures to trade on a
consolidative mode today tracking mixed overnight performances in U.S. equities
while a potential of bargain hunting following rebound in crude oil might provide
supportive tone to the market. Therefore, the support and resistance for today can
be pegged at 1,360.0 and 1,383.0 respectively.

Strategy
Trader may short with a stop on or above 1,383.0.
Source: Bloomberg O/I chg Open Interest Previous Week
Contract Sett Change High Low Volume Open Int O/I chg Value USD 3mth avg Value USD High Low
FBMKLCI 1378.65 -4.52 1383.55 1371.74 120 Mn 1406.53 1376.78
JUN 23 1375.50 -5.00 1383.00 1368.50 5452 37,703 -753 -11.26 Mn 29,640 443.38 Mn 0.00 0.00
JUL 23 1376.00 -6.00 1383.50 1370.00 127 202 -30 -.45 Mn 6,355 95.10 Mn 0.00 0.00
SEP 23 1363.00 -6.00 1371.00 1360.00 42 765 13 .19 Mn 833 12.35 Mn 0.00 0.00
DEC 23 1362.50 -6.00 1370.50 1357.00 74 171 23 .34 Mn 631 9.36 Mn 0.00 0.00
5,695 38,841 -747 -11.18 Mn 37,459 560.19 Mn

Futures Fair Value KLIBOR KF Est Premium to Fair -.7 Pts -0.05%
Contract Exp. Date Index Pt Div Idx Pt (Gross) FV Div Idx pt (Net) FV
0.80%
JUN 23 30/6/2023 2.65 1.69 0.96 1.69 0.96 0.60%
JUL 23 31/7/2023 6.39 1.95 4.43 1.95 4.43 1.0% 0.40%
Roll FV 3.47 3.47 0.20%
0.00%
0.0% -0.20%
Benchmark Indices Relative to FBMKLCI
-0.40%
Source: Bloomberg Last 1d Chg 6m Chg 3m Chg 6m Chg -0.60%
-1.0% -0.80%
FBMKLCI 1378.65 -0.33% -5.95% -0.32% 5.09% 15/3/2023
22/3/2023
29/3/2023
5/4/2023
12/4/2023
19/4/2023
26/4/2023
3/5/2023
10/5/2023
17/5/2023
24/5/2023
31/5/2023
7/6/2023
FBM100 9862.23 -0.33% -3.58% 1.19% 2.52%
FV Fair/Premium
FBMEMAS 10161.97 -0.34% -3.45% 1.10% 2.67%
Local Sector Performance againts FBMKLCI 3m Avg Last KF FV
Sector 1d Chg 3m Chg 6m Chg Futures Roll -2.46 0.50 3.47
Financial 0.33% -1.12% -2.26%
4
Plantation -0.41% 1.30% 5.21%
Utilities 0.00% 0.00%
0
Currencies Last 1d Chg 3m Chg 6m Chg
USDMYR 4.5975 -0.22% 2.81% 4.55% -4
CNYMYR 0.6444 -0.46% 0.37% 2.13%
Dollar Index (DXY) 104.099 -0.02% -1.44% -0.95% -8
MYR to DXY 0.20% -4.13% -5.26%
-12
World Equity Indices Relative to FBMKLCI 06/23/2006/30/2007/07/2007/14/2007/21/2007/28/2008/04/2008/11/2008/18/2008/25/2009/01/2009/08/2009/15/20
Source: Bloomberg Last 1d Chg 6m Chg 3m Chg 6m Chg Last Close KF Est
USA
Dow Jones 33665.02 0.27% 0.20% 8.11% 6.54% 30 Days 60 Days 90 Days
S&P 500 4267.52 -0.38% 8.48% 12.95% 15.35% FBMKLCI Volatility 5.96% 8.83% 8.02%
NASDAQ 13104.89 -1.29% 19.59% 19.92% 27.16%
Europe 20
DAX 15960.56 -0.20% 11.89% 7.73% 18.97% 18
CAC 7202.79 -0.09% 8.36% 3.76% 15.22% 16
FTSE100 7624.34 -0.05% 2.04% 1.45% 8.50%
14
EURO Stoxx 460.80 -0.19% 5.82% 5.47% 12.52%
12
Asia Pacific
Nikkei 225 31913.74 -1.82% 15.74% 18.38% 23.06% 10

Hang Seng 19252.00 0.80% -1.02% 1.31% 5.25% 8

Straits Times 3179.58 -0.33% -1.75% 3.97% 4.47% 6
KOSPI 2615.60 0.01% 10.31% 13.48% 17.30%
4
TAIEX 16922.48 0.96% 16.28% 12.88% 23.64%
2
S&P/ASX200 7117.99 -0.16% -0.80% 2.77% 5.48%
U.S. markets 0
17/5/2022 17/7/2022 17/9/2022 17/11/2022 17/1/2023 17/3/2023 17/5/2023
The S&P 500 and Nasdaq closed in negative territory on Wednesday as investors took profits
after a months-long megacap stocks run and ahead of key economic and policy events next
week. - Reuters 30D Volalitity (%) 60D Volatility (%) 90D Volatility (%)

Kenanga Futures Sdn Bhd (353603-X)

General Line: (603) 2172 3888 Fax: (603) 2172 2729 Email: futures@kenanga.com.my Source: Bloomberg
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