25 Feb 2025 BMD Local Market

LOCAL MARKET 

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FKLI

FKLI Feb month dropped 6.5 points or 0.41% to closed lower at 1583. The FBM KLCI closed lower after a lackluster trading session on Monday, mirroring the weak performance across most regional markets.

Overnight Dow Jones index rose 33 points to closed slightly higher at 43461. Wall Street faced difficulty gaining momentum on Monday, closing mixed after last week's decline, while German election results lifted German stocks and the euro. Investors remained focused on the upcoming midweek earnings report from artificial intelligence chip giant Nvidia.

The actively traded FKLI contract formed a higher low last week, suggesting an attempt to move within an upward channel, though it ultimately failed to do so. The index remains confined within a narrow range inside a broader downward channel on the daily chart. Resistance is seen at 1585–1586, and failure to break above this level could push the index lower. Our primary strategy remains selling on rebounds, with the index likely to continue its downward movement. A break below the 1578–1580 support zone could accelerate the decline, with the next support level seen at the 1570–1572 range. 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 1585 with targets at 1589/1593 and stop-loss at 1580

Short positions may be opened below 1585 with targets at 1580/1576 and stop-loss at 1590

FCPO

FCPO May month contract dropped 105 points or 2.25% to closed lower at 4559. Malaysian crude palm oil futures edged lower on Monday, influenced by declines in rival oils on the Dalian and Chicago markets.

Overnight soybean oil for the May contract dropped 1.04 to closed lower at 46.30. Dalian’s active palm oil contract dropped 110 points to close lower at 9158 on previous night session.

The previously upward channel appears to have failed to form on the daily chart, as the actively traded FCPO contract struggled to break above the resistance at 4700–4705. The sideways consolidation pattern has become more established, with prices now trading below the midpoint of the 4580–4575 range, which acts as the major resistance level for upside. A rebound sell strategy remains the primary approach, potentially driving prices toward the 4480–4485 support zone at the bottom of the sideways range. Beware o sentiment changes. The immediate support and resistance levels are pinpointed at 4530 and 4555, respectively.

(News Source: Reuters)

Recommend Trading Plan:

Long positions may be opened above 4555 with targets at 4577/4603 stop-loss at 4535

Short positions may be opened below 4555 with targets at 4530/4508 stop-loss at 4575

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.