FBM KLCI Futures Likely To Stay Steady Next Week

By Karina Imran

KUALA LUMPUR, Sept 28 (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’s vice-president of equity research, Thong Pak Leng anticipates the FBM KLCI to move within the 1,650-1,670 range, with immediate resistance at 1,670 and support at 1,640.

"We expect the index to turn upward due to some buying, driven by prevailing low valuations, improving economic conditions, and strong corporate earnings," he told Bernama 

Based on technical analysis, he noted that the FBM KLCI has experienced a slight pullback, signaling a potential short-term correction.

On a positive note, the 20-day Exponential Moving Average (EMA) is slightly above the 50-day EMA, indicating a medium-term uptrend, he explained. 

“However, the narrowing gap between the two EMAs suggests a potential consolidation phase. 

"This current market correction offers a strategic opportunity for investors to accumulate stocks at lower levels, particularly those with a long-term perspective,” he said. 

As the market pulls back, many fundamentally strong stocks are trading at discounted prices, encouraging bargain hunting by value investors, he said. 

For the week just ended, spot month September 2024 fell 15.5 points to 1,658.5, October 2024 declined 12.5 points to 1,663.5, December 2024 slid 10.0 points to 1,670.0 and March 2025 slipped 11.5 points to 1,655.5. 

Turnover surged to 196,103 lots from 21,307 lots the previous week, while open interest increased to 90,858 contracts from 57,254 contracts previously.

-- BERNAMA