FBM KLCI Futures To Track Cash Market Recovery Next Week

By Nurunnasihah Ahmad Rashid

KUALA LUMPUR, Jan 18 (Bernama) -- The FTSE Bursa Malaysia KLCI (FBM KLCI) futures contract on Bursa Malaysia Derivatives is expected to track the underlying cash market, with a continued recovery anticipated next week.

Rakuten Trade Sdn Bhd’s vice-president of equity research, Thong Pak Leng, anticipates the FBM KLCI will trade within a range of 1,560 to 1,590.

“The benchmark index has recovered slightly after a significant sell-off, but we believe the FBM KLCI must remain above the 1,600 level to regain momentum. 

"Indicators suggest the index remains in oversold territory, so we expect bargain hunting to persist next week, as the FBM KLCI is currently trading below 14 times its forward price-to-earnings ratio, significantly lower than its five-year average of nearly 17 times,” he told Bernama.

For the week just ended, January 2025 dropped 32 points to 1,567.0, February 2025 edged down 29.5 points to 1,570.5, March 2025 fell 30 points to 1,552.15, and June 2025 contracts declined by 26.5 points to 1,561.5.

Turnover rose to 46,659 lots, up from 30,969 lots the previous week, while open interest increased to 44,886 contracts from 42,928 contracts.

On a Friday-to-Friday basis, the key index fell 35.69 points to 1,566.72, down from 1,602.41 the previous week.

-- BERNAMA