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Performance of Crude Palm Oil and Crude Palm Kernel Oil Futures in Malaysian Derivatives Market

Author

Listed:
  • Noriza Binti Mohd Saad

    (Universiti Tenaga Nasional (UNITEN))

  • Noraini Binti Ismail

    (Universiti Tenaga Nasional (UNITEN))

  • Nor Edi Azhar Binti Mohamad

    (Universiti Tenaga Nasional (UNITEN))

  • Normaisarah Binti Abdul Manaf

    (Universiti Tenaga Nasional (UNITEN))

Abstract

This study investigates the performance of two contracts traded that is Futures Crude Palm Oil (hereafter refers as FCPO) and Crude Palm Kernel Oil futures (hereafter refers as FPKO) in Malaysian derivatives market. The effects of contract’s settlement, volume and open interest was analyzed towards open price (hereafter refers as price) for both contract traded. Secondary data is used, which are gathered from Bloomberg, Bursa Malaysia for N=1,296 over the period between 2006 and 2010. Overall the result revealed by regression and independent T-test shows that; the dependent variables and independent variables have a strong relationship, and the prices and volume of trading for FCPO is performed better and the most preferable contract compared to the FPKO contracts traded in Bursa Malaysia.

Suggested Citation

  • Noriza Binti Mohd Saad & Noraini Binti Ismail & Nor Edi Azhar Binti Mohamad & Normaisarah Binti Abdul Manaf, 2012. "Performance of Crude Palm Oil and Crude Palm Kernel Oil Futures in Malaysian Derivatives Market," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 2(4), pages 136-143, October.
    • Handle: RePEc:hur:ijaraf:v:2:y:2012:i:4:p:136-143
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    References listed on IDEAS

    as
    1. Abdul Jalil Ibrahim & Khairuddin Othman & Obiyathulla Ismath Bacha, 1999. "Issues in Stock Index Futures Introduction and Trading. Evidence From the Malaysian Index Futures Market," Capital Markets Review, Malaysian Finance Association, vol. 7(1&2), pages 1-46.
    2. Frankie Chau & Phil Holmes & Krishna Paudyal, 2008. "The Impact of Universal Stock Futures on Feedback Trading and Volatility Dynamics," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 35(1‐2), pages 227-249, January.
    3. Chris Brooks & Ryan J. Davies & Sang Soo Kim, 2005. "Cross Hedging with Single Stock Futures," ICMA Centre Discussion Papers in Finance icma-dp2004-15, Henley Business School, University of Reading.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Crude Palm Oil Futures; Crude Palm Kernel Oil futures; Trading Volume; Open Interest; Price;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

    Statistics

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