KUALA LUMPUR – The FTSE Bursa Malaysia KLCI (FBM KLCI) futures contract is expected to move in line with the cash market movement, which is now on the uptrend supported by Budget 2021 unveiled yesterday.
The Budget focuses on growing the economy and building the country’s resilience amid the Covid-19 pandemic.
An analyst said the recent change in sentiment that sent the local bourse above 1,500 may propel further gains over the foreseeable future towards immediate resistance at 1,515 to 1,520.
“However, the sentiment is expected to be cautious ahead of the third-quarter gross domestic product to be released next Friday.
“Meanwhile, the development of the US presidential election is another factor that will influence markets, as the victor will have his own set of policies that determine how Malaysia will trade with the US.”
On a Friday-to-Friday basis, spot month November rose 19.5 points to 1,512, December bagged 20.5 points to 1,511, March 2021 added 24 points to 1,505.5, and distant June 2021 stood at 1,494.5.
Turnover fell to 49,110 lots from 81,490 last week, while open interest eased to 36,267 contracts from 47,144 previously.
The FBM KLCI ended 52.75 points higher at 1,519.64 yesterday from 1,466.89 a week earlier. – Bernama, November 7, 2020
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