KUALA LUMPUR, Sept 19 — The FTSE Bursa Malaysia KLCI (FBM KLCI) futures contracts on Bursa Malaysia Derivatives closed sharply higher today, buoyed by the stronger cash market, a dealer said.

Phillip Futures Sdn Bhd dealer Elky Liam Kian Yap said FBM KLCI futures spiked up today as investors cheered over the Federal Reserve’s decision to delay the start of the stimulus reduction.

Local and global markets reacted positively to the news after the US Federal Reserve Chairman Ben Bernanke said jobless rate was above acceptable levels and downside risks to growth have eased.

“Some strategists predict the local market will continue to scale new highs and buy on rally could be the strategy for now. However, there are other uncertainties in the market such as the US fiscal policy decisions and debt limit,” he told Bernama.

At close, September 2013 and October 2013 rose 28 points each to 1,795 and 1,798, respectively; December 2013 spike up 31 points to 1,796 and March 2014 advanced 30 points to 1,785.

Turnover rose to 10,750 lots from Yesterday’s 4,574 lots while open interest increased to 55,575 contracts from 49,843 contracts yesterday.

The underlying FBM KLCI closed 21.51 points higher at 1,792.91. — Bernama