20 Jun 2025 BMD Local Market

LOCAL MARKET 

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FKLI

FKLI June month dropped 15.5 points or 1.03% to closed lower at 1494.5. The FBM KLCI closed lower on Thursday, reflecting a cautious market tone as investors remained concerned over tensions in the Middle East and the lack of new domestic catalysts. 

The Dow cash market was closed in the previous session for the Juneteenth holiday. Meanwhile, stock futures traded lower ahead of Friday’s session as investors closely watched rising tensions in the Middle East between Iran and Israel, along with concerns over potential U.S. involvement.

The actively traded FKLI contract remains in a bearish momentum, though it is still trading within the midrange of a broad downward channel. After failing to hold above the key support zone at 1,504–1,505, the index extended its decline. We reckon a sell-on-rebound strategy as the primary approach. However, some technical buying may emerge, with a potential rebound toward the resistance zone at 1,499–1,502 — where selling pressure is likely to return. Beware of any potential sentiment changes. Immediate support and resistance levels are identified at 1494 and 1499, respectively.

(News Source: The Star, CNBC)

Recommend Trading Plan:

Long positions may be opened above 1499 with targets at 1504/1509 and stop-loss at 1494

Short positions may be opened below 1499 with targets at 1494/1489 and stop-loss at 1504

FCPO

FCPO Sep month rose 4 points or 0.10% to closed slightly higher at 4104. Malaysian palm oil futures traded mostly unchanged on Thursday, with support from stronger Dalian edible oils offset by subdued demand from key buyers like India.

CBOT soyoil was closed on Thursday in observance of the Juneteenth holiday and has resumed trading today. Dalian’s active palm oil contract rose 64 points to close higher at 8596 on previous night session.

The actively traded FCPO contract is showing an upward bias, having broken out of a recent consolidation range. It is currently supported above the 4,090–4,095 zone, which now serves as a key level for maintaining the bullish momentum. On the lower time frame, the price is moving within a minor upward channel, with resistance spotted at 4,175–4,180. As long as the 4,125–4,120 support zone holds, the price may continue climbing. However, if this support fails, a pullback toward the 4,090–4,095 region is likely, though downside risk remains limited for now. Beware of any potential sentiment changes. The immediate support and resistance levels are pinpointed at 4127 and 4152, respectively.

(News Source: Reuters)

Recommend Trading Plan:

Long positions may be opened above 4127 with targets at 4152/4175 stop-loss at 4107

Short positions may be opened below 4127 with targets at 4106/4083 stop-loss at 4147

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.