FBM KLCI futures likely to trend higher next week

The FTSE Bursa Malaysia KLCI (FBM KLCI) futures contract on Bursa Malaysia Derivatives is likely to trend higher next week as the market enters the month of December, said an analyst.

Rakuten Trade equity research vice-president Thong Pak Leng said technically, the benchmark index staged a rebound and broke out from the one-week bullish flag pattern with a long white candle yesterday.

“If the FBM KLCI Index surpasses the 1,465 resistance line, we foresee additional upward potential.

“As such, we anticipate the index to trend within the 1,445-1,465 range for next week, with immediate support at 1,445 followed by 1,430,” he added.

Meanwhile, SPI Asset Management managing director Stephen Innes said that next week, markets would need to see a broader US market rally to encourage foreign investors to move into perceived riskier Malaysian markets.

For the week just ended, the November 2023 contract was pegged at 1,447.0, December 2023 and June 2024 each gained 4.5 points to 1,461.0 and 1,447.0, respectively, while March 2024 added 5.5 points to 1,449.0.

Weekly turnover improved to 136,437 lots from 37,893 lots in the previous week, while open interest decreased to 44,081 contracts from 48,739 contracts previously.

On a Friday-to-Friday basis, the FBM KLCI rose 2.46 points to end the week at 1,456.38 versus 1,453.92 a week ago. — BERNAMA