KUALA LUMPUR, June 20 — The FTSE Bursa Malaysia KLCI (FBM KLCI) futures contracts (FKLI) on Bursa Malaysia Derivatives is likely to trend higher next week, in tandem with the positive cash market outlook, a dealer said.  

Affin Hwang Investment Bank Vice-President and Head of Retail Research Datuk Dr Nazri Khan said the local bourse is expected to stage an oversold rebound next week driven by the dovish Federal Reserve stance, positive performance of global stocks and the ringgit’s recovery.

“The FBM KLCI should have a mild respite, mirroring the bullish global market’s performance as the Fed is likely to stagger any interest rate hike,” he told Bernama.

He said the FBM KLCI traded sideways on ultra-low volume and hovered around the 1,720-1730 range, with no sign of a major bottoming, while overhead resistance at 1750 has not yet been won.

“The extremely oversold reading from major oscillators warrant the FBM KLCI to stage a corrective bounce over next week’s session,” Nazri said.

For the week just ended, the futures market saw range trading between the 1,711 and 1,732 levels.

On a Friday-to-Friday basis, spot month June 2015 lost 12.5 points to 1,727, July 2015 shed 14.5 points 1,726.50, and September 2015 slipped 16.5 points to 1,724.50, while December 2015 fell 18.5 points 1,727.

Turnover for the week improved to 43,642 lots from 35,675 lots last week, while open interest declined to 37,141 contracts from 42,056 contracts previously. — Bernama