FBM KLCI FUTURES

KUALA LUMPUR The FTSE Bursa Malaysia KLCI (FBM KLCI) futures contracts are expected to consolidate and trend sideways this week, tracking the performance of the underlying cash market, adealersaid.

Affin Hwang Investment Bank vice-president/head of retail research Datuk Nazri Khan Adam Khan said the local market is expected to make a technical correction.

“The futures has gone up very high and started selling at discounts which would prompt more profit taking,’’ he told Bernama.

Another dealer said from a technical perspective, the bearish pattern formed had not been nullified and as such, believed the negative sentiment would stay intact. He advised investors to stay short. Throughout last week, the futures contracts saw range-bound trading in tandem with the cash market.

On a Friday-to-Friday basis, March 2017 gained 12 points to 1,709.5, while June 2017 and September 2017 added 10.5 points each to 1,703.5 and 1,700 respectively.

Newly introduced month April 2017 stood at 1,708.

Turnover for the week fell to 49,160 lots from 70,481 lots the previous Friday.

Open interest declined to 34,196 contracts from 58,006 contracts.

The benchmark FBM KLCI ended the week 10.03 points higher at 1,708.38 from 1,698.35 the previous Friday. – Bernama