KUALA LUMPUR – The FTSE Bursa Malaysia KLCI futures contract on Bursa Malaysia Derivatives is likely to trade range-bound with upside bias in line with the underlying cash market next week.
Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said the local market sentiment is expected to remain cautious amid volatility surrounding the global markets.
However, he said that the market would continue to be supported by the year-end window dressing activities.
“The local bourse is likely to continue trading in a cautious mode with the key index expected to move between 1,490 and 1,510 points next week,” he said.
During the week just ended, December 2021 and January 2022 added six points each to 1,492.0 and 1,494.0 respectively. March 2022 increased 9.5 points to 1,488.5 and June 2022 gained seven points to 1,483.0.
Turnover improved to 31,204 lots from 31,146 lots in the previous week, while open interest eased to 35,014 contracts from 36,077 contracts previously.
RHB Research said in a note that investors should maintain short positions initiated at 1,496.50 points at the close of December 1 trading, as the upside movement may face strong selling pressure near the 1,500-point psychological level.
“Breaching the psychological level would see the index form a new ‘higher’ bullish pattern. Before that happens, we stick to a negative trading bias until the stop-loss is breached.
“To mitigate trading risks, the stop-loss is set at 1,517 points,” it noted.
On a Friday-to-Friday basis, the index added 13.13 points to end the week at 1,502.01 from 1,488.88 previously. – Bernama, December 18, 2021
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