FBM KLCI FUTURES

KUALA LUMPUR The FTSE Bursa Malaysia KLCI (FBM KLCI) futures contracts will likely trend higher this week, mirroring the anticipated bullish performance of the underlying cash market.

Affin Hwang Investment Bank vice-president and head of retail research, Datuk Nazri Khan Adam Khan, said the FTSE Bursa Malaysia KLCI (FBM KLCI) was expected to inch higher towards the 1,780-level this week.

“The FBM KLCI will be supported by positive local economic news and the return of calmness after the sharp drop on Wall Street early last week,’’ he told Bernama.

Nazri said the FBM KLCI maintained its bullishness into higher territory, recording a total gain of 116 points or 7.1% year-to-date, as equity bulls remained largely unfazed by hikes in the US interest rate.

Meanwhile, he said, Prime Minister Datuk Seri Najib Tun Razak’s statement saying that Malaysia gross domestic product would be higher than 4.2% this year, would also lift market sentiment.

“This shows that the economy was growing more than double the rates the International Monetary Fund had predicted for advanced economies while showing that Malaysia was firmly on the path to become a high-income nation,” he added.

On a Friday-to-Friday basis, March 2017 gained 26 points to 1,748, April 2017 rose 28.5 points to 1,751.5, June 2017 was up 29.5 points to 1,750 and September 2017 added 31.5 points to 1,748.

Turnover for the week was marginally lower at 34,152 lots from 34,915 lots recorded the previous Friday while open interest widened to 42,676 contracts from 40,586 contracts.

The benchmark FBM KLCI ended the week 0.55 of-a-point higher at 1,745.75 from 1,745.20 the previous Friday.