BURSA MALAYSIA DERIVATIVES

Monthly Newsletter (FEBRUARY/MARCH 2024)

MONTHLY HIGHLIGHTS
1. Bursa Malaysia Derivatives achieves record-high open interest, indicating positive crude palm oil market sentiments.
Open interest for the Crude Palm Oil Futures (FCPO) reached a record breaking 299,190 contracts on 14 March 2024,
surpassing the previous high of 287,859 on 10 September 2014. This coincides with a new peak in combined open interest
for all products, totalling 360,132 contracts, exceeding the previous highest of 346,403 contracts on 26 February 2020.

2. Bursa Malaysia Derivatives successfully hosted the 35th Palm & Lauric Oils Price Outlook Conference & Exhibition
(POC2024) in Kuala Lumpur from 4 to 6 March 2024. The event was officiated by Datuk Seri Johari Abdul Ghani, the
Minister of Plantation and Commodities and drew approximately 1,880 delegates from 58 countries. 64 organisations
supported the event as partners and exhibitors, solidifying its position as a key event in the global edible oils industry.

3. In a significant move to expand the breadth of its commodity offerings, the Exchange launched the Bursa Malaysia DCE
Soybean Oil Futures (FSOY) contract on 18 March 2024. Traded and settled in US Dollar, FSOY provides an alternative
avenue for price discovery and risk management to international market participants with exposure to the Chinese
soybean oil market. Learn more about FSOY here.

4. Application is now open for the second intake of the Futures Trading Apprenticeship Program (FTAP). FTAP is a
programme that equips aspiring traders with the skills and knowledge needed for a successful derivatives trading career
in Malaysia through an immersive learning experience with industry experts and real-world practice. Applications close
on 7 April 2024, visit FTAP website for more information.

COMMODITY DERIVATIVES
Monthly Average Daily Contracts & Open Interest of FCPO
253.4k
209.0k 222.0k 213.5k 206.1k 214.7k 213.6k
69,554

63,808
63,699

62,750
56,091

54,598

51,517

Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24

Average Daily Contract (ADC) Open Interest (OI)

COMMODITIES NEWS UPDATES

1. Industry players and smallholders need to increase the production of fresh fruit bunches (FFB) and crude palm oil (CPO) to
maintain the relevance of the Malaysian palm industry, said Plantation and Commodities Minister Datuk Seri Johari Abdul
Ghani. He said the government would not open new plantation areas but instead would focus on efforts to increase the
yields.

2. Malaysia maintained its export tax for crude palm oil at 8% for April and raised its reference price to 3,958.58 ringgit
($842.43) per metric ton for April, which previously was 3,793.94 ringgit a ton in March. The export tax structure starts at
3% for crude palm oil in a 2,250 to 2,400 ringgit-per-ton range. The maximum tax rate is set at 8% when prices exceed
3,450 ringgit a ton.

3. President Joko Widodo inaugurated Indonesia’s first red cooking oil production facility in North Sumatra, aiming to advance
the country's palm oil industry and empower farmers. This initiative is in line with Indonesia’s efforts to enhance the value
of its palm oil sector, leveraging its vast oil palm plantations covering 15.3 million hectares, with 40.5 per cent, or 6.2
million hectares, owned by farmers.
Source: The Star, The Star, The Star
PALM OIL MONTHLY STATISTICS (FEBRUARY 2024)

CPO PO Closing PO Export Average CPO

Production Stock Price

1.26M 1.92M 1.02M RM3,949.50

(10.18%) (5.00%) (24.75%) (4.39%)
*CPO = Crude Palm Oil *PO = Palm Oil
BURSA MALAYSIA DERIVATIVES
Monthly Newsletter (FEBRUARY/MARCH 2024)
FIXED INCOME, CURRENCY & EQUITY DERIVATIVES
Monthly Average Daily Contracts & Open Interest of FKLI
52.4k
45.7k 43.9k
42.6k
37.0k 36.4k
34.5k

16,227
14,931
12,785

12,461
12,300

11,878
11,517

Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24

Average Daily Contract (ADC) Open Interest (OI)

FIXED INCOME, CURRENCY & EQUITY NEWS UPDATES

1. At its meeting on 7 March 2024, the Monetary Policy Committee (MPC) of Bank Negara Malaysia (BNM) decided to
maintain the Overnight Policy Rate (OPR) at 3.00 percent. The global economy continues to expand albeit moderately,
supported by domestic demand amid improvement in trade activity. Favourable labour market conditions in some
countries continue to support consumption activity.

2. The international reserves of Bank Negara Malaysia amounted to USD114.3 billion as at 29 February 2024. The reserves
position is sufficient to finance 5.4 months of imports of goods and services, and is 1.0 times of the total short-term
external debt.

3. Bursa Malaysia Berhad, Indonesia Stock Exchange (IDX), The Stock Exchange of Thailand (SET), and Singapore Exchange
(SGX Group), have announced a collaboration on the ASEAN-Interconnected Sustainability Ecosystem (ASEAN-ISE), to
advance ASEAN’s sustainable development through the implementation of common ESG metrics in their respective data
infrastructures. The ASEAN-ISE initiative was formalised at a recent meeting between the Partner Exchanges, marking an
agreement on the foundational governance structure and operational blueprint for building the inter-connected
sustainability ecosystem.

Source: Bank Negara Malaysia, Bank Negara Malaysia , NST Online

GLOBAL MARKET INDICES MALAYSIA ECONOMIC STATISTICS

CLOSING
INDEX YTD (%) MTD (%) KEY INDICATORS DATA (%) CHANGE
PRICE

FBMKLCI 1,551.44 6.77 2.30 PRODUCER PRICE INDEX 117.90 0.08

DOW JONES 38,996.39 3.40 1.24 CONSUMER PRICE INDEX 131.40 0.15
NIKKEI 225 39,166.19 17.66 8.76 EXPORTS 122.4 bil 3.38

HANG SENG 16,511.44 0.81 6.07 IMPORTS 112.2 bil 5.15

*Data as of 29th February 2024. *Data from Department of Statistics Malaysia as of 31st January 2024.

Commodity Fixed Income & Currency Equity

Susan Low +603-2034 7390 Toh Ean Loo +603-2034 7261 Sarvini +603-2034 7408
susanlow@bursamalaysia.com toheanloo@bursamalaysia.com sarvini@bursamalaysia.com
DISCLAIMER

This newsletter has been provided for general information purposes only. The information contained in this newsletter does not constitute financial or trading advice and does not make
any recommendation regarding the product/s mentioned. Although care has been taken to ensure the accuracy of the information within this newsletter, Bursa Malaysia Berhad and its
group of companies including Bursa Malaysia Derivatives Berhad (“Bursa Malaysia”) do not warrant or represent, expressly or impliedly as to the accuracy, completeness and/or currency of
the information herein. Bursa Malaysia further does not warrant or guarantee the performance of any product/s referred to in this newsletter. All applicable laws, regulatory requirements
and rules, including current Rules of Bursa Malaysia Derivatives and Rules of Bursa Malaysia Derivatives Clearing should be referred to in conjunction to this newsletter. Bursa Malaysia does
not accept any liability for any claim howsoever arising, out of or in relation to this newsletter including but not limited to any financial or trading decisions made by the reader or any
third party on the basis of this information. You are advised to seek independent advice prior to making financial or trading decisions.

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