FKLI Trading 7th October 2009

KL index futures opened marginally lower but losses were limited as spillover buying momentum from previous day stirred some speculative buying interest. Despite a subdued underlying market weighed down by palm oil plantation counter, in particular KL Kepong, futures prices inch steadily higher in line with positive showing across major global markets.

Adding on to the feel good vibes, Australia became the first major country to raise interest rates since the onset of the financial crisis last year, fuelling optimism that other economies might also be growing. In range trade, October contract edged 1.5 index points higher to finish the day at 1217.5. With little leads from the domestic macro side, most traders would remain fixated on external development which will continue to dictate price movements. Following a strong close in Wall Street for the 2nd consecutive day, KL index futures looks set to trade on upward bias within 1215 to 1228 levels.