13 Feb 2025 BMD Local Market

LOCAL MARKET 

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FKLI 

FKLI Feb month rose 9 points or 0.57% to closed higher at 1600. The FBM KLCI closed higher today, surpassing the 1,600 psychological level, driven by steady buying interest in blue-chip stocks.

Overnight Dow Jones index dropped 225 to closed lower at 44368. Wall Street stocks mostly declined on Wednesday after U.S. inflation data came in higher than expected, while the euro strengthened amid signs of potential progress in Russia-Ukraine peace talks. Major U.S. indices opened sharply lower as January's consumer price index revealed rising inflation, raising concerns about whether the Federal Reserve's efforts to curb price increases might be losing momentum. 

The actively traded FKLI contract continued to trend higher, holding support above 1,592–1,593. We maintain our buy-on-retracement strategy, with resistance seen at 1,604–1,605. A breakout above this level could trigger stronger buying momentum, while failure to break may lead to technical selling pressure. Stay cautious of potential sentiment changes. Immediate support and resistance levels are identified at 1596 and 1601, respectively.

(News Source: The Star, Yahoo)

Recommend Trading Plan:

Long positions may be opened above 1596 with targets at 1601/1605 and stop-loss at 1591

Short positions may be opened below 1596 with targets at 1592/1588 and stop-loss at 1601

FCPO

FCPO Apr month contract dropped 28 points or 0.61% to closed lower at 4621. Malaysian crude palm oil futures closed higher for the fifth consecutive session on Wednesday, supported by a favorable U.S. report on global agricultural supply and demand estimates, along with stronger Dalian palm olein.

Overnight soybean oil for the May contract dropped 0.48 to closed lower at 46.13. Dalian’s active palm oil contract dropped 14 points to close lower at 9128 on previous night session.

The actively traded FCPO contract in the previous session broke above the 4,645–4,650 resistance range, reaching a high of 4,704 before pulling back and hovering around the former resistance, which now acts as support. We anticipate a consolidation phase before the market takes its next direction. On the hourly chart, selling pressure emerged after the price neared the 4,700 range, with a rebound attempt facing resistance at 4,670–4,675. A breakout above this level could lead to further upside, while failure to break may result in a downward move. Stay alert to potential sentiment changes. The immediate support and resistance levels are pinpointed at 4647 and 4670, respectively.

(News Source: Reuters)

Recommend Trading Plan:

Long positions may be opened above 4670 with targets 4693/4715 at stop-loss at 4650

Short positions may be opened below 4670 with targets at 4647/4622 stop-loss at 4690

Disclaimer: This information is intended to assist professional investors. News are credit courtesy of Reuters, Nasdaq.com, Bloomberg, CNN, Market Watch, FT.com, the Star online, forbes.com, mining.com and CNBC. The information does not constitute investment advice or an offer to invest or to provide management services and is subject to correction, completion and amendment without notice. As with all investments, there are associated risks and you could lose money investing. Prior to making any investment, a prospective investor should consult with its own investment, accounting, legal and tax advisers to evaluate independently the risks, consequences and suitability of the investment.