Futures market of crude palm oil (FCPO) and Kuala Lumpur index (FKLI) as the price discovery in Malaysia / Faqihah Jamak

Price discovery is known as the factors to determine the prices by using demand and supply. This understanding helps investors, fund managers and speculator efficiently to make decisions for asset evaluation. A lot of study states that a future price is one of the main price discovery factors to pre...

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Bibliographic Details
Main Author:	Jamak, Faqihah
Format:	Thesis
Language:	English
Published:	2018
Subjects:	Kuala Lumpur KLSE Palm oil
Online Access:	https://ir.uitm.edu.my/id/eprint/100020/2/100020.pdf
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id	my-uitm-ir.100020
record_format	uketd_dc
spelling	my-uitm-ir.1000202024-09-25T09:42:54Z Futures market of crude palm oil (FCPO) and Kuala Lumpur index (FKLI) as the price discovery in Malaysia / Faqihah Jamak 2018-12 Jamak, Faqihah Kuala Lumpur. KLSE Palm oil Price discovery is known as the factors to determine the prices by using demand and supply. This understanding helps investors, fund managers and speculator efficiently to make decisions for asset evaluation. A lot of study states that a future price is one of the main price discovery factors to predict and determine the spot price. However, there were studies regarding futures price as the price discovery is ineffective when the market is efficient. This event happened due to poor regulatory framework and excessive speculation which can cause a moral hazard. Due to this matter, this research attempts to examine whether there is relationship between the future prices towards the spot prices and to identify the main future contract month that affects the spot contract. This study is based on Malaysia derivative product which is crude palm oil (CPO) from the commodity derivative and Kuala Lumpur Composite Index (KLCI) from equity derivative. The entire samples were taken in daily basis from January 2018 until March 2018 from the Bursa Malaysia website. Ordinary Least Squares (OLS) were used as a method for relationship estimation. The findings of this study are positive relationship between future crude palm oil (FCPO) for one-month, two-month and three-month contract prices towards spot crude palm oil and also positive relationship between future KLCI (FKLI) for next-month, next-quarter month and next-two quarter month contract index and spot KLCI. 2018-12 Thesis https://ir.uitm.edu.my/id/eprint/100020/ https://ir.uitm.edu.my/id/eprint/100020/2/100020.pdf text en public degree Universiti Teknologi MARA, Johor Faculty of Business and Management Mohamed Yousop, Nur Liyana
institution	Universiti Teknologi MARA
collection	UiTM Institutional Repository
language	English
advisor	Mohamed Yousop, Nur Liyana
topic	Kuala Lumpur KLSE Palm oil
spellingShingle	Kuala Lumpur KLSE Palm oil Jamak, Faqihah Futures market of crude palm oil (FCPO) and Kuala Lumpur index (FKLI) as the price discovery in Malaysia / Faqihah Jamak
description	Price discovery is known as the factors to determine the prices by using demand and supply. This understanding helps investors, fund managers and speculator efficiently to make decisions for asset evaluation. A lot of study states that a future price is one of the main price discovery factors to predict and determine the spot price. However, there were studies regarding futures price as the price discovery is ineffective when the market is efficient. This event happened due to poor regulatory framework and excessive speculation which can cause a moral hazard. Due to this matter, this research attempts to examine whether there is relationship between the future prices towards the spot prices and to identify the main future contract month that affects the spot contract. This study is based on Malaysia derivative product which is crude palm oil (CPO) from the commodity derivative and Kuala Lumpur Composite Index (KLCI) from equity derivative. The entire samples were taken in daily basis from January 2018 until March 2018 from the Bursa Malaysia website. Ordinary Least Squares (OLS) were used as a method for relationship estimation. The findings of this study are positive relationship between future crude palm oil (FCPO) for one-month, two-month and three-month contract prices towards spot crude palm oil and also positive relationship between future KLCI (FKLI) for next-month, next-quarter month and next-two quarter month contract index and spot KLCI.
format	Thesis
qualification_level	Bachelor degree
author	Jamak, Faqihah
author_facet	Jamak, Faqihah
author_sort	Jamak, Faqihah
title	Futures market of crude palm oil (FCPO) and Kuala Lumpur index (FKLI) as the price discovery in Malaysia / Faqihah Jamak
title_short	Futures market of crude palm oil (FCPO) and Kuala Lumpur index (FKLI) as the price discovery in Malaysia / Faqihah Jamak
title_full	Futures market of crude palm oil (FCPO) and Kuala Lumpur index (FKLI) as the price discovery in Malaysia / Faqihah Jamak
title_fullStr	Futures market of crude palm oil (FCPO) and Kuala Lumpur index (FKLI) as the price discovery in Malaysia / Faqihah Jamak
title_full_unstemmed	Futures market of crude palm oil (FCPO) and Kuala Lumpur index (FKLI) as the price discovery in Malaysia / Faqihah Jamak
title_sort	futures market of crude palm oil (fcpo) and kuala lumpur index (fkli) as the price discovery in malaysia / faqihah jamak
granting_institution	Universiti Teknologi MARA, Johor
granting_department	Faculty of Business and Management
publishDate	2018
url	https://ir.uitm.edu.my/id/eprint/100020/2/100020.pdf
_version_	1811769046505357312

Futures market of crude palm oil (FCPO) and Kuala Lumpur index (FKLI) as the price discovery in Malaysia / Faqihah Jamak

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