KUALA LUMPUR: The FTSE Bursa Malaysia KLCI (FBM KLCI) futures contract on Bursa Malaysia Derivatives is likely to see tight-range trading next week, tracking the performance of the underlying cash market.
Rakuten Trade equity research vice-president Thong Pak Leng said the FBM KLCI is expected to trade in a narrow range of between 1,445 and 1,465 next week as investors await new catalysts.
"From a technical point of view, the benchmark index failed to surpass the critical resistance level of 1,465 despite a few attempts, followed by two consecutive days of decline and tested the 20-day Exponential Moving Average (EMA) on Thursday.
"In view of the rising EMA, we believe there is an upward bias in the near term, as long as the FBM KLCI continues to trade above the EMA line," he told Bernama.
For the week just ended, the November 2023 contract dropped 6.0 points to 1,455.5, December 2023 and June 2024 each lost 5.5 points to 1,456.5 and 1,443.5, respectively, while March 2024 trimmed 7.0 points to 1,442.5.
Weekly turnover improved to 37,893 lots from 33,390 lots in the previous week, while open interest increased to 48,739 contracts from 43,955 contracts previously.
On a Friday-to-Friday basis, the FBM KLCI fell 6.75 points to end the week at 1,453.92 versus 1,460.67 a week ago.