FBM KLCI Futures Likely To Echo Cash Market Amid Geopolitical, Tariff Uncertainty

By Harizah Hanim Mohamed

KUALA LUMPUR, June 14 (Bernama) -- The FTSE Bursa Malaysia KLCI (FBM KLCI) futures contract on Bursa Malaysia Derivatives is expected to reflect the performance of the underlying cash market due to ongoing global market uncertainty.

Rakuten Trade Sdn Bhd's equity research vice-president, Thong Pak Leng, told Bernama that the prevailing risk-off sentiment, triggered by Israel’s strikes on Iran and the escalating tensions in the Middle East, is expected to put pressure on the market next week.

AmInvestment Bank Bhd head of research Paul Yap Ee Xing said Washington’s announcement of unilateral tariffs adds to existing global trade uncertainties and encourages a risk-off approach among investors.

“While regional markets are showing mixed trends, Bursa Malaysia could potentially diverge depending on local developments, although in the absence of a clear domestic catalyst, investors are expected to remain on the sidelines until broader clarity is achieved,” he told Bernama.

Yap added that external factors, such as United States inflation data and ongoing tensions in the Middle East, play a significant role in shaping market behaviour by influencing the flow of global risk capital.

Moving forward, market direction will largely hinge on how trade negotiations evolve and whether tensions between Iran and Israel escalate further, both of which could have far-reaching implications for investor sentiment and sector performance.

On a Friday-to-Friday basis, the June 2025 contract went up by 5.5 points to 1,512.0, the July 2025 contract was 6.0 points better at 1,510.5, the September 2025 contract put on 4.5 points to 1,492.0, and the December 2025 contract added three points to 1,497.5.

Weekly turnover narrowed to 22,132 lots from 23,669 lots in the previous week, while open interest widened to 40,297 contracts from 37,381 contracts previously.

On a Friday-to-Friday basis, the barometer index rose 1.32 points to 1,518.11 from 1,516.79 a week earlier.

-- BERNAMA