20 May 2025 BMD Local Market

LOCAL MARKET 

Click here to contact us: https://goo.gl/B6Dccf

FKLI

FKLI May month dropped 14 points or 0.89% to closed lower at 1553. The FBM KLCI closed lower on Monday, tracking the subdued performance across Asian markets as sentiment was dampened by weak economic data from China and the recent downgrade of the United States’ sovereign credit rating.

Overnight Dow Jones rose 137 points to closed higher at 42792. U.S. stocks ended largely flat on Monday, as market sentiment was weighed down by the downgrade of the federal government's once-perfect sovereign credit rating due to its substantial debt burden.

The actively traded FKLI contract closed lower in the previous session. From a broader perspective, the index remains within a downward channel and has recently broken below a crucial support zone at 1567–1566, which now serves as resistance. We maintain a sell-on-rebound strategy as long as the index stays below this resistance. However, a break above this level may signal a potential buying opportunity. Beware of any potential sentiment changes. Immediate support and resistance levels are identified at 1557 and 1562, respectively.

(News Source: The Star; Reuters)

Recommend Trading Plan:

Long positions may be opened above 1557 with targets at 1562/1567 and stop-loss at 1552

Short positions may be opened below 1557 with targets at 1552/1547 and stop-loss at 1562

FCPO

FCPO Aug month rose 67 points or 1.76% to closed higher at 3882. Malaysian palm oil futures ended higher on Monday, breaking a two-day losing streak, supported by gains in rival soyoil prices.

CBOT soybean oil Jul month rose 0.51 points to close higher at 49.44 on Monday. Dalian’s active palm oil contract rose 48 points to close higher at 8054 on previous night session.

The actively traded FCPO contract, from a broader perspective, continues to move within a downward channel. Recently, prices found support within a new range at 3895–3890. We anticipate a consolidation with an upside bias, potentially extending technical buying towards the resistance levels around 3945, and possibly as high as 3970, if the 3920 immediate resistance is breached. However, if the 3920 level fails to break, we may see a pullback in prices. Beware of any potential sentiment changes. The immediate support and resistance levels are pinpointed at 3897 and 3920, respectively.

(News Source: Reuters)

Recommend Trading Plan:

Long positions may be opened above 3920 with targets at 3945/3970 stop-loss at 3900

Short positions may be opened below 3920 with targets at 3897/3872 stop-loss at 3940

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.