FBM KLCI futures likely to continue uptrend next week

The FTSE Bursa Malaysia KLCI (FBM KLCI) futures contract on Bursa Malaysia Derivatives is expected to trend higher next week ahead, tracking the positive outlook on the underlying cash market.

Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the increasing daily trading volume for Bursa Malaysia suggested an improvement in overall sentiment.

“We believe in the attractiveness of Malaysian equities’ valuations, therefore, we expect the buying momentum to continue next week. The local benchmark index had also rebounded and was attempting to break above the 20-day exponential moving average (EMA) on Friday,” he told Bernama.

Although both the 20-day and 50-day EMAs are showing signs of improvement, indicating a potential shift to a positive trend in the upcoming sessions, he still expected choppy market conditions ahead.

For the week just ended, spot month March 2024 improved 36.5 points to 1,554.5, April 2024 gained 36.0 points to 1,555.0, June 2024 climbed 35.0 to 1,558.0, while September 2024 added 34.0 points to 1,547.5. 

Weekly turnover advanced to 44,107 lots from 39,241 lots last week and open interest went up to 64,473 contracts from 56,363 contracts previously. 

On a Friday-to-Friday basis, the FBM KLCI added 12.97 points to 1,552.83 from last week’s 1,539.86 — BERNAMA / pic MEDIA MULIA