KUALA LUMPUR: The FTSE Bursa Malaysia KLCI (FBM KLCI) futures contract on Bursa Malaysia Derivatives is expected to trade in cautious mode but on an upside bias next week, tracking the performance of the underlying cash market.
Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said there is increasing market volatility amid uncertainties surrounding the global market.
The investor sentiment would remain jittery amid ongoing geopolital tension in Taiwan and Ukraine, China's lockdown following its zero-COVID policy, interruption in global supply chain as well as expectation of US rate hikes, he said.
However, he expected the FBM KLCI to continue its uptrend in the near term, on the emergence of bargain hunting, mainly due to the cheap valuations of local stocks and continuous inflow of foreign investors.
“As such, we anticipate the FBM KLCI to trend within the 1,490 to 1,510 range for next week with immediate resistance at 1,530 with support at 1,470,” he told Bernama.
For the week just ended, September 2022 shed 3.5 points to 1,471.5, December 2022 declined six points to 1,465.0 and March 2023 decreased eight points to 1,458.0.
August 2022 contract ended at 1,510 points on Tuesday while newly introduced contract month October 2022 stood at 1,469 points on Friday.
Turnover for the holiday shortened week shrank to 55,784 lots from 109,615 lots in the previous week, while open interest fell to 33,912 contracts from 96,168 contracts.
On a weekly basis, the benchmark index fell 9.11 points to 1,491.18 from 1,500.29 at the end of the previous week.
Bursa Malaysia and its subsidiaries were closed on Wednesday for the National Day holiday.
-- BERNAMA