24 Feb 2025 BMD Local Market

LOCAL MARKET 

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FKLI

FKLI Feb month rose 11.5 point or 0.73% to closed higher at 1589.5. The FBM KLCI rebound gained momentum on Friday, driven by strong gains in PETRONAS Dagangan, which led the market higher.

Overnight Dow Jones index dropped 748 points to closed lower at 43428. Stocks closed lower on Wall Street but edged higher in Europe on Friday as investors navigated uncertainty over U.S. President Donald Trump's swift policy moves, including spending cuts and tariffs, along with Germany's upcoming elections. Meanwhile, oil prices dropped over 2%, and gold retreated from record highs.

The actively traded FKLI contract formed a higher low in last week's trading, suggesting an attempt to move within an upward channel. The price recently corrected to the 1573–1571 range, with further upside movement likely, provided it holds above a key support zone. We anticipate a lower opening today, tracking the sharp overnight decline in the U.S. market. Crucial support is seen at the 1581–1579 range—holding this level could present a buying opportunity, while a breakdown below it may trigger further selling pressure. Stay cautious of potential sentiment changes. Immediate support and resistance levels are identified at 1586 and 1591, respectively.

(News Source: The Star; Reuters)

Recommend Trading Plan:

Long positions may be opened above 1581 with targets at 1586/1591 and stop-loss at 1576

Short positions may be opened below 1581 with targets at 1577/1573 and stop-loss at 1586

FCPO

FCPO May month contract rose 22 points or 0.47% to closed higher at 4664. Malaysian palm oil futures climbed on Friday, marking their fifth straight weekly gain—the longest winning streak in three years—driven by expectations of lower production.

Overnight soybean oil for the May contract dropped 0.45 to closed lower at 47.34. Dalian’s active palm oil contract dropped 90 points to close lower at 9304 on previous night session.

The actively traded FCPO contract remains within an upward channel in daily timeframe. However, on the hourly timeframe, the price is consolidating within a sideways range, suggesting a temporary pause in its upward momentum. A breakout above the upper boundary of 4700–4705 could drive prices higher towards the 4760–4755 region.

Currently, the price has reached resistance at the upper boundary of the sideways range and pulled back. We anticipate technical selling in the upcoming session, with support around 4650–4645. A break below this level could push prices lower toward the 4625–4620 zone, with a potential decline to 4600–4605 as the lowest range. The immediate support and resistance levels are pinpointed at 4651 and 4678, respectively.

(News Source: Reuters)

Recommend Trading Plan:

Long positions may be opened above 4651 with targets at 4678/4702 stop-loss at 4631

Short positions may be opened below 4651 with targets at 4626/4605 stop-loss at 4671

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.