KUALA LUMPUR: The FTSE Bursa Malaysia KLCI (FBM KLCI) futures contract on Bursa Malaysia Derivatives is likely to move higher next week, tracking the positive movement of the underlying cash market.
Bank Islam Malaysia Bhd economist Adam Mohamed Rahim said the key index would move near the 1,600 psychological level as investors returned from their long holiday break.
"As markets including Malaysia and Indonesia reopen next week from a long weekend, we expect trading activities to increase back to normal levels.
"Therefore, we foresee the FBM KLCI trading in the range of 1,580 to 1,600 points next week,” he told Bernama.
Adam said sentiment in the market would continue be influenced by the nationwide expansion of the Movement Control Order and the strength in prices of commodities such as Brent crude and crude palm oil.
For the week just ended, May 2021 fell 12 points to 1,576.0, June 2021 and December 2021 erased 11 points each to 1,574.0 and 1,561.0.63 respectively, while September 2021 lost 11.5 points to 1,564.00.
The local market was opened for three days, being closed on Thursday and Friday in conjunction with the Hari Raya Aidilfitri holidays.
Turnover slumped to 16,876 lots this week from 138,984 lots in the previous week, while open interest slid to 35,155 contracts from 38,398 contracts a week earlier.
The benchmark FBM KLCI declined 4.93 points to 1,582.52 on Wednesday from 1,587.45 registered last Friday. - Bernama