12 Jun 2025 BMD Local Market

 LOCAL MARKET 

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FKLI

FKLI June month rose 11 points or 0.73% to closed higher at 1522. Bursa Malaysia closed significantly higher on Wednesday, supported by regional market strength and renewed optimism surrounding progress in US-China trade negotiations.

Overnight Dow Jones tick lower 1 point to closed almost flat at 42865. Wall Street stocks and the U.S. dollar declined on Wednesday, while Treasury yields softened, as markets reacted to renewed tensions in the Middle East, limited clarity on the U.S.-China trade agreement, and modest gains in U.S. consumer prices.

The actively traded FKLI contract continues to hover near the midpoint of a broad downward channel on the daily chart. After enduring consistent selling pressure from May 15 to June 3, the index found solid support around the 1,509–1,511 zone. On the hourly chart, an upward consolidation channel remains intact, suggesting a potential "buy on retracement" strategy. Immediate support is seen at the 1,516–1,515 range, while resistance lies between 1,523 and 1,524. A breakout above this resistance could lead the index higher toward the 1,528–1,529 zone or beyond. However, failure to break above may trigger a technical correction, although any downside is likely to remain limited. Beware of any potential sentiment changes. Immediate support and resistance levels are identified at 1516 and 1524, respectively.

(News Source: The Star; Reuters)

Recommend Trading Plan:

Long positions may be opened above 1520 with targets at 1524/1529 and stop-loss at 1515

Short positions may be opened below 1520 with targets at 1516/1511 and stop-loss at 1525

FCPO

FCPO Aug month dropped 25 points 0.65% to closed lower at 3839. Malaysian palm oil futures fell for a second consecutive session on Wednesday, closing at their lowest level in over two weeks, pressured by declining prices of rival edible oils and an increase in end-May stockpiles.

The CBOT Soyoil active traded contract rose 0.23 to close higher at 48.02 on previous session. Dalian’s active palm oil contract dropped 38 points to close lower at 7990 on previous night session.

The actively traded FCPO contract continues to trade within a broader sideways consolidation range, with key support at 3,790–3,785 and resistance between 3,975–3,970. In the previous session, prices failed to hold above the 3,860–3,865 support zone and are now lingering near the lower boundary of the range. We maintain a sell-on-rebound strategy, with immediate resistance seen at the 3,840–3,845 zone. A breakout above this level may trigger short-term technical buying toward 3,865, or potentially as high as 3,888. However, failure to breach this resistance could lead to renewed selling pressure from that point. Beware of any potential sentiment changes. The immediate support and resistance levels are pinpointed at 3820 and 3798, respectively.

(News Source: Reuters)

Recommend Trading Plan:

Long positions may be opened above 3862 with targets at 3890/3912 stop-loss at 3842

Short positions may be opened below 3862 with targets at 3835/3812 stop-loss at 3882

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.