17 Feb 2025 BMD Local Market

LOCAL MARKET 

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FKLI 

FKLI Feb month dropped 6.5 point or 0.41% to closed lower at 1592.5. The FBM KLCI closed flat as mixed sentiment influenced buying patterns following Bank Negara's release of the fourth-quarter (4Q24) GDP data on Friday. Malaysia's economy expanded by 5% in 4Q24, surpassing both market expectations and the official advance estimate of 4.8%.

Overnight Dow Jones index dropped 165 to closed lower at 44546. Wall Street stocks closed mixed on Friday, with Nvidia rising while Microsoft edged lower. Meanwhile, Treasury yields declined, a day after former U.S. President Donald Trump announced reciprocal tariff plans but refrained from imposing new ones.

The actively traded FKLI contract faced resistance at the 1,604–1,605 range after a recent surge, forming a doji candle that signals a potential reversal. On the hourly chart, price remain consolidating sideways after the uptrend, with a rebound sell remain intact. Support is seen at 1,589 to 1588; a break below could push prices toward 1,585, while holding this level may offer a buying opportunity with limited upside. Stay cautious of potential sentiment changes. Immediate support and resistance levels are identified at 1590 and 1594, respectively.

(News Source: The Star; Reuters)

Recommend Trading Plan:

Long positions may be opened above 1594 with targets at 1598/1603 and stop-loss at 1589

Short positions may be opened below 1594 with targets at 1590/1585 and stop-loss at 1599

FCPO

FCPO May month contract rose 42 points or 0.94% to closed higher at 4499. Malaysian crude palm oil futures closed higher on Friday, marking their fourth consecutive weekly gain, driven by lower stock levels despite concerns over demand and uncertainties regarding Indonesia's biodiesel mandate.

Overnight soybean oil for the May contract dropped 0.18 to closed lower at 46.07. Dalian’s active palm oil contract rose 56 points to close higher at 9068 on previous night session.

The actively traded FCPO contract has shifted to the May contract starting today. On the daily chart, the contract remains in a wide sideways consolidation range with a downside bias, struggling to break above the 4645-4650 resistance zone and form lower high. Meanwhile, the hourly chart shows prices consolidating within an upward channel. Key support is seen at 4490-4485; if this level holds, buying opportunities may emerge. However, if support fails, selling pressure could extend towards the 4465 range. Stay alert to potential sentiment changes. The immediate support and resistance levels are pinpointed at 4491 and 4517, respectively.

(News Source: Reuters)

Recommend Trading Plan:

Long positions may be opened above 4491 with targets 4517/4541 at stop-loss at 4471

Short positions may be opened below 4491 with targets at 4468/4446 stop-loss at 4511

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.