26 Feb 2025 BMD Local Market

LOCAL MARKET 

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FKLI

FKLI Feb month dropped 12.5 points or 0.79% to closed lower at 1570.5. 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 159 points to closed higher at 43621. The Dow rose on Tuesday, while the other two major Wall Street indexes extended their losing streak to a fourth session, as Treasury yields and the dollar fell amid signs of slowing U.S. growth and uncertainty over Trump administration policies. Meanwhile, Germany's election results boosted the euro, lifting European shares to a higher close. 

The actively traded FKLI contract continues to trend within a downward channel on the daily timeframe. We maintain a strategy of selling on rebounds, with the next support level at 1563–1561. A break below this range could extend declines toward 1558–1555, where the price may find support. Stay cautious of potential sentiment changes. Immediate support and resistance levels are identified at 1568 and 1573, respectively.

(News Source: The Star; Reuters)

Recommend Trading Plan:

Long positions may be opened above 1573 with targets at 1577/1581 and stop-loss at 1568

Short positions may be opened below 1573 with targets at 1568/1563 and stop-loss at 1578

FCPO

FCPO May month contract rose 6 points or 0.13% to closed slightly higher at 4565. Malaysian crude palm oil futures edged up on Tuesday, supported by a weak February production outlook and gains in Chicago soyoil, though advances were capped by weak Dalian oils and subdued exports.

Overnight soybean oil for the May contract dropped 0.25 to closed lower at 46.05. Dalian’s active palm oil contract dropped 34 points to close lower at 9174 on previous night session.

The actively traded FCPO contract remains in a sideways consolidation, with the range narrowing and a potential breakout in either direction. We anticipate a further downside bias as the price is trading below the mid-range of 4480–4485. The primary plan is a rebound sell, with a likely move toward 4550–4555. A break below this level could lead to further declines toward 4530–4535. However, if the price holds above the mid-range, the strategy shifts to a buy plan. The immediate support and resistance levels are pinpointed at 4553 and 4581, respectively.

(News Source: Reuters)

Recommend Trading Plan:

Long positions may be opened above 4581 with targets at 4606/4630 stop-loss at 4561

Short positions may be opened below 4581 with targets at 4553/4530 stop-loss at 4601

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.