FBM KLCI futures expected to trend higher next week

THE FTSE Bursa Malaysia KLCI (FBM KLCI) futures contract on Bursa Malaysia Derivatives is expected to remain steady next week, tracking the performance of the underlying cash market.

Inter-Pacific Asset Management Sdn Bhd executive director and fund manager Datuk Nazri Khan Adam Khan said market is expected to trend higher next week as moves by the US and China would increase investors risk appetite.

“This will provide some support for stock markets as the chairman of the US Federal Reserve said that monetary policy will be more accomodative and less aggressive, sending a signal to other central banks that there is no rush to raise interest rates,” he told Bernama.

He said that the benchmark index’s immediate resistance is at 1,480 to 1,490 and support at 1,520 to 1,530.

For the week just ended, August 2022 declined 7.5 points to 1,496.5, September 2022 shed 12.5 points to 1,475.0, December 2022 dipped 14.5 points to 1,471.0, while March 2023 decreased 13.0 points to 1,466.0.

Turnover soared to 109,615 lots from 38,886 lots in the previous week, while open interest rose to 96,168 contracts from 40,495 contracts.

On a weekly basis, the benchmark index fell 4.15 points to 1,500.29 from 1,504.44 at the end of the previous week. —BERNAMA