21 May 2025 BMD Local Market

LOCAL MARKET 

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

FKLI

FKLI May month dropped 5.5 points or 0.35% to closed lower at 1547.5. The FTSE Bursa Malaysia KLCI (FBM KLCI) futures contract closed lower on Tuesday, mirroring the decline in the underlying cash market.

Overnight Dow Jones dropped 114 points to closed lower at 42677. U.S. stocks declined on Tuesday, snapping a six-day winning streak for the S&P 500, as rising Treasury yields and concerns over the U.S. sovereign debt profile weighed on market sentiment

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 recently broken below a new support zone at 1562–1560, which now serves as important resistance range. We maintain a sell-on-rebound strategy, where a retracement toward the 1556-1557 resistance zone may offer selling opportunities. Beware of any potential sentiment changes. Immediate support and resistance levels are identified at 1551 and 1556, respectively.

(News Source: The Star; Reuters)

Recommend Trading Plan:

Long positions may be opened above 1556 with targets at 1562/1567 and stop-loss at 1551

Short positions may be opened below 1556 with targets at 1551/1545 and stop-loss at 1561

FCPO

FCPO Aug month rose 26 points or 0.67% to closed higher at 3908. Malaysian palm oil futures rose for the second straight session on Tuesday, lifted by stronger gains in Dalian palm olein after China introduced fresh stimulus measures.

CBOT soybean oil Jul month rose 0.06 points to close moderately higher at 49.50 on Tuesday. Dalian’s active palm oil contract rose 18 points to close higher at 8094 on previous night session.

The actively traded FCPO contract continues to trend within a downward channel from a broader perspective. In the previous session, prices struggled to break above the 3940–3945 resistance range, capping further upside. However, on the lower end, we observed support forming around the 3895–3890 zone. If this support holds, we maintain our buy-on-retracement strategy, with potential upside revisiting the 3940–3945 area. That said, a break below the 3895–3890 support range may trigger renewed selling pressure. Beware of any potential sentiment changes. The immediate support and resistance levels are pinpointed at 3903 and 3921, respectively.

(News Source: Reuters)

Recommend Trading Plan:

Long positions may be opened above 3921 with targets at 3942/3963 stop-loss at 3901

Short positions may be opened below 3921 with targets at 3903/3880 stop-loss at 3941

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.