19 May 2025 BMD Local Market

LOCAL MARKET 

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FKLI

FKLI May month dropped 7.5 points or 0.48% to closed lower at 1567. Bursa Malaysia ended the week slightly lower, mirroring the weakness in key regional markets, as continued profit-taking kept the market in consolidation mode.

Overnight Dow Jones rose 331 points to closed higher at 42322. Wall Street's major indexes rose for a fifth consecutive session on Friday, supported by optimism from the U.S.-China tariff truce earlier in the week, despite economic survey data revealing a dip in consumer sentiment.

The actively traded FKLI contract closed lower in the previous session. From a broader perspective, the index remains within a downward channel and is currently hovering near the resistance zone of that channel. On the hourly chart, the price continues to consolidate sideways, with resistance seen at 1584–1586 and support at 1560–1562. Immediate support lies at 1566–1567 — if this level holds, a buying opportunity may emerge. However, a break below this support could trigger further selling. Overall, we maintain our primary strategy of "sell on rebound" for the upcoming session. Beware of any potential sentiment changes. Immediate support and resistance levels are identified at 1566 and 1572, respectively.

(News Source: The Star; Reuters)

Recommend Trading Plan:

Long positions may be opened above 1566 with targets at 1572/1577 and stop-loss at 1560

Short positions may be opened below 1566 with targets at 1560/1553 and stop-loss at 1572

FCPO

FCPO Aug month dropped 53 points or 1.37% to closed lower at 3815. Malaysian palm oil futures declined on Friday, marking a third consecutive weekly loss, pressured by weakness in rival vegetable oils on the Chicago and Dalian exchanges.

CBOT soybean oil Jul month rose 0.10 points to close slightly higher at 49.03 on Friday. Dalian’s active palm oil contract rose 16 points to close slightly higher at 8022 on previous night session.

The actively traded FCPO contract, from a broader perspective, continues to trade within a downward channel. The price recently faced resistance in the new range of 3870 to 3865. We maintain our sell-on-rebound strategy for the upcoming session. Immediate support is seen at the 3800 to 3795 range. If this level holds, a mild technical rebound may occur. However, if support fails, further selling pressure could push prices down toward 3776, with the next key support at 3751. Beware of any potential sentiment changes. The immediate support and resistance levels are pinpointed at 3801 and 3826, respectively.

(News Source: Reuters)

Recommend Trading Plan:

Long positions may be opened above 3826 with targets at 3850/3873 stop-loss at 3806

Short positions may be opened below 3826 with targets at 3801/3776 stop-loss at 3846

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.