Inaugural Post

What a day for me to start blogging about the Malaysian futures market.  It was a very exciting and volatile day for the markets.  The KLCI futures opened 6 points higher than yesterday’s close at 934 amid Dow Jones Industrial Average (DJIA) positive close at 9015.  Thereafter the market made a high of 942.5 and was still support right before lunch.  But after the lunch break, it opened lower at 934.5 and quite quickly made a dip southwards all the way to 920, and stabilised at the price of around 925.

The crash was caused by negative sentiments from the Hang Seng which dropped about 3.4% to 9239.24 when news of Bank of America selling part of its shares in China Contruction Bank Ltd (the 2nd largest lender in China) for an amount of $2.8 billion came in.  The sale is to raise cash amid the economic turmoil.  Most of the banking stocks in Hang Seng were also dragged down by this news.  Another factor dragging down the market was the India’s Sensex index that plunged about 6% when news of accounting irregularities of Satyam Computer Services Ltd. crept into their markets.

Daily range of KLCI futures market was 22.5 points, surely a very fruitful day for careful day traders.  Volume was quite high at 8555.  The futures market closed at 921.5 (-6.5), while the KLCI closed at 927.62 (+5.39).