FBM KLCI Futures To Stay In Consolidation Mode With Upside Bias Next Week

By Durratul Ain Ahmad Fuad

KUALA LUMPUR, Aug 3 (Bernama) -- The FTSE Bursa Malaysia KLCI (FBM KLCI) futures contract on Bursa Malaysia Derivatives is likely to move in tandem with the underlying cash market next week.

Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the FBM KLCI is expected to stay in consolidation mode with an upside bias next week as the long-term direction of the local market remains positive. 

From a technical point of view, he said the benchmark index continued its retracement, closing below the 20-day exponential moving average (EMA) and expects market volatility to persist, with the FBM KLCI fluctuating around the 20-day EMA.

“Despite the short-term consolidation, the longer-term trend remains upward as the index is still above the 50-day EMA,” he told Bernama. 

For the week just ended, the spot month August 2024 contract increased 1.5 points to 1,619.0, September 2024 inched down half-a-point to 1,600.5. December 2024 gained 1.5 points to 1,609.5, and March 2025 is at 1,600.0.

During the week, turnover rose to 156,743 lots from 79,667 in the previous week, while open interest dropped to 53,986 contracts from 81,910 contracts.

On a Friday-to-Friday basis, the FBM KLCI eased 1.83 points to 1,611.05 from last week’s 1,612.88.

-- BERNAMA