16 Jun 2025 BMD Local Market

LOCAL MARKET 

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FKLI

FKLI June month dropped 6 points or 0.40% to closed lower at 1512. The FBM KLCI ended lower on Friday, dragged by broad-based selling in technology, healthcare, and logistics counters, as investor sentiment turned risk-averse amid escalating geopolitical tensions and the U.S. announcement of upcoming unilateral tariffs within the next two weeks.

Overnight Dow Jones dropped 769 points to closed sharply lower at 42197. Wall Street closed sharply lower on Friday following heightened geopolitical tensions after Iran launched missiles at Israel in retaliation for Israeli airstrikes targeting its nuclear infrastructure. Explosions were reported over Tel Aviv and Jerusalem, with sirens sounding across the country as Israel confirmed incoming missile fire from Iran, escalating concerns in global markets.

The actively traded FKLI contract continues to hover near the midpoint of a broad downward channel on the daily chart. On the hourly chart, prices remain rangebound within a narrow sideways pattern. Immediate resistance is seen at the 1,512–1,514 zone; failure to break above this level may trigger renewed selling momentum, potentially driving the index back toward previous lows at 1,504–1,506 or even lower. However, a successful breakout above resistance could lead to a limited upside move toward 1,517–1,518. Our view remains to sell on rebound, with key support located at 1,500–1,498. Beware of any potential sentiment changes. Immediate support and resistance levels are identified at 1506 and 1512, respectively.

(News Source: The Malaysia Reserve, Reuters)

Recommend Trading Plan:

Long positions may be opened above 1512 with targets at 1517/1522 and stop-loss at 1507

Short positions may be opened below 1512 with targets at 1506/1499 and stop-loss at 1517

FCPO

FCPO Sep month jumped 86 points 2.24% to closed higher at 3922. Malaysian palm oil futures ended higher on Friday, supported by a sharp rally in crude oil and gains in rival edible oils on the Dalian and Chicago exchanges amid rising geopolitical tensions. The contract also marked its fifth consecutive weekly gain.

The CBOT soyoil futures closed up their daily 3-cent limit across the board on previous session, the active traded contract settled up 3.00 to close higher at 50.61 on previous session. Dalian’s active palm oil contract rose 284 points to close higher at 8414 on previous night session.

The actively traded FCPO contract has rolled forward to the September 2025 contract starting today. The contract remains within a broad sideways consolidation range, with key support at 3,790–3,785 and resistance at 3,975–3,970. On the shorter time frame, the price is now trading near the upper boundary of this range. Given the strong positive momentum in rival markets, palm oil prices are likely to open with a gap up. Immediate resistance is seen at 3,970–3,980; a breakout above this level may lead to further upside toward the 4,000 mark. However, failure to break above the resistance could trigger some selling pressure, with limited downside likely toward the 3,955–3,960 support zone. Beware of any potential sentiment changes. The immediate support and resistance levels are pinpointed at 3927 and 3958, respectively.

(News Source: Reuters)

Recommend Trading Plan:

Long positions may be opened above 3958 with targets at 3980/4006 stop-loss at 3938

Short positions may be opened below 3958 with targets at 3927/3900 stop-loss at 3978

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