LOCAL MARKET
FKLI Apr month dropped 12 points or 0.79% to closed lower at 1502.5. The FBM KLCI tumbled 1% on Friday, extending its decline as investors took a risk-off approach amid broad losses across Asia following U.S. President Donald Trump’s sweeping tariffs.
Asian equity markets followed the global downturn, with recession fears mounting as unexpectedly harsh tariffs rattled investors, despite markets in China, Hong Kong, and Taiwan being closed for a holiday.
Overnight Dow Jones index falls 2231 points to closed lower at 38314. U.S. stock futures opened sharply lower late Sunday, indicating a continuation of the two-day selloff that erased trillions in equity value following the Trump administration's tariff announcement last week.
The actively traded FKLI contract is expected to open lower, tracking the sharp decline in the U.S. market. On the daily chart, the first support is identified in the 1492–1487 range, aligning with the uptrend line established since March 13. If the index holds within this range, we may see some consolidation and potential buying opportunities. However, if the market breaks below this level, further downside could emerge, potentially reaching the 1470–1475 range. Stay cautious of potential sentiment changes. Immediate support and resistance levels are identified at 1487 and 1496, respectively.
(News Source: The Star; Reuters)
Recommend Trading Plan:
Long positions may be opened above 1487 with targets at 1496/1502 and stop-loss at 1481
Short positions may be opened below 1487 with targets at 1479/1470 and stop-loss at 1493
FCPO
FCPO Jun month slumped 161 points or 3.59% to closed lower at 4328. Malaysian crude palm oil futures fell on Friday, weighed down by weaker Chicago soyoil and crude oil prices, as reciprocal tariffs imposed by U.S. President Donald Trump heightened uncertainty in global trade.
Overnight soybean oil for the May contract dipped 1.22 to closed lower at 45.84. Dalian market was closed on April 4, 2025, for the Qing Ming Festival and will reopen today.
The actively traded FCPO contract remains within a broad sideways range and continues to exhibit a downside bias after the crucial support at 4435–4430 failed to hold, making "sell on rebound" the main strategy. On a smaller timeframe, prices are currently trading within the 4425–4420 support range, which aligns with the retracement support of the uptrend line established since March 25. If this range fails to hold, we could see further declines toward 4270–4275, which might mark the lowest point. However, if 4425–4420 holds, there could be a buying opportunity, though with limited upside potential. Beware of any potential sentiment changes. The immediate support and resistance levels are pinpointed at 4324 and 4348, respectively.
(News Source: Reuters)
Recommend Trading Plan:
Long positions may be opened above 4324 with targets at 4348/4370 stop-loss at 4304
Short positions may be opened below 4324 with targets at 4297/4273 stop-loss at 4344
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.
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