25 Jun 2025 BMD Local Market

LOCAL MARKET 

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FKLI

FKLI June month rose 7 points or 0.46% to closed higher at 1515.5. The FBM KLCI closed lower on Tuesday, diverging from regional markets, despite broad-based gains. Meanwhile, the ringgit recorded its largest single-day advance in nearly seven weeks against the US dollar, following U.S. President Donald Trump’s announcement of a ceasefire between Israel and Iran.

The Dow Jones index rose 507 points to closed higher at 43089 on previous session. U.S. stocks climbed more than 1% on Tuesday, buoyed by relief over a tentative truce between Israel and Iran, while investors closely monitored Federal Reserve Chair Jerome Powell’s congressional testimony for signals on future monetary policy. All three major indexes recorded a second consecutive session of strong gains after recent U.S. missile strikes targeted Iran’s uranium enrichment facilities.

The actively traded FKLI contract continued its upward movement, supported by positive regional sentiment. While the broader trend remains within a downward channel, the short-term outlook reflects a sideways consolidation with an upward bias. The index may potentially test the immediate resistance zone at 1,523–1,524. A breakout above this level could see prices extend higher toward 1,528–1,529. However, failure to break the resistance may trigger selling pressure. Immediate support is seen at 1,514–1,516. 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 Sep month plunged 143 points or 3.47% to closed lower at 3983. Malaysian palm oil futures fell over 3% on Tuesday, ending a four-day winning streak, as the market came under pressure from declines in Chicago soyoil and crude oil prices following a ceasefire agreement between Israel and Iran that helped ease regional tensions.

CBOT soyoil jumped another 1.14 points to closed lower for second consecutive session at 52.61 on Tuesday.  Dalian’s active palm oil contract dropped 58 points to close lower at 8316 on previous night session.

The actively traded FCPO contract closed sharply lower in the previous session, tracking declines in rival edible oils. We maintain our view that the market remains within a broader sideways consolidation phase, with repeated failures to break above the key resistance zone of 4,145–4,150. In the last session, prices touched a crucial support area at 3,960–3,965, which marks the midpoint of the broader range. While overall sentiment remains cautious, some technical buying may emerge, potentially lifting prices toward the resistance zone at 4,025–4,030. A breakout above this level could lead to further gains toward the 4,054 level. Beware of any potential sentiment changes. The immediate support and resistance levels are pinpointed at 3985 and 4003, respectively.

(News Source: Reuters)

Recommend Trading Plan:

Long positions may be opened above 4003 with targets at 4030/4054 stop-loss at 3983

Short positions may be opened below 4003 with targets at 3985/3963 stop-loss at 4023

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.