KUALA LUMPUR, June 11 — The FTSE Bursa Malaysia KLCI (FBM KLCI) futures contracts (FKLI) on Bursa Malaysia Derivatives are expected to trade lower next week, in line with the weak outlook for the cash market.
Affin Hwang Investment Bank Vice-President and Retail Research Head, Datuk Dr Nazri Khan Adam Khan, said the FBM KLCI would ease further with sentiment weighed down by the growing concern on the coming Brexit referendum on June 23, 2016 as well as the US Federal Open Market Committee meeting next week.
“However, the increase in Bank Negara Malaysia's international reserves from RM300 million to RM382.6 million (equivalent to US$97.3 billion) as at May 31, 2016 should cushion any weakness,” he told Bernama.
For the week just-ended, the futures market was mostly lower on cautious trading. Spot month June 2016 fell 2.00 points to 1,633.50, July 2016 eased 0.50 of-a-point to 1,633.00, September 2016 down 2.50 points to 1,625.00 and December 2016 fell 3.00 points to 1,614.00.
Turnover declined to 28,045 lots from 51,135 lots last week while open interests increased to 42,325 contracts versus 39,026 contracts previously.
The benchmark FBM KLCI settled at 1,641.22, down 9.29 points from 1,636.46 last Friday. — Bernama
