By Sharifah Pirdaus Syed Ali
KUALA LUMPUR, May 4 (Bernama) -- The FTSE Bursa Malaysia KLCI (FBM KLCI) futures contract on Bursa Malaysia Derivatives is expected to trade on an upside bias next week, said an analyst.
Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the benchmark FBM KLCI continued its rally last week, supported by buying interest in heavyweights.
In light of this momentum, he said the index is anticipated to hover within the 1,575 to 1,600 range next week.
Meanwhile, SPI Asset Management managing director Stephen Innes said the strong close of the FBM KLCI this week, coupled with bullish momentum, suggests that it may continue its upward trajectory next week if both the Chinese and United States (US) economic indicators align positively.
Despite ongoing challenges in China's economic fundamentals, such as slowing growth and regulatory uncertainties, investors appear to be finding potential opportunities amid emerging economic and policy green shoots which should support local markets with a knock-on effect, he shared.
In the US market, he said economic data will play a crucial role in determining the near-term expectations for rate cuts, starting with tonight's jobs report, which serves as a major litmus test.
"If the nonfarm payroll report confirms expectations of multiple US rate cuts this year, a test of 1,600 for the FBM KLCI is not out of the realm of possibility," he added.
For the week just ended, May 2024 gained 16.5 points to 1,594.0 while June 2024 and September 2024 went up 16.0 points each to 1,595.0 and 1,583.0 respectively.
April 2024 ended on Tuesday, April 30 at 1,579.50, while new month December 2024 ended the week at 1,587.0.
For the holiday-shortened week, turnover dropped to 16,231 lots from 176,889 lots in the previous week, while open interest declined to 50,900 contracts from 150,385 contracts previously.
The FBM KLCI ended the week 14.43 points higher at 1,589.59 from 1,575.16 last week.
-- BERNAMA
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