16 Jul 2025 BMD Local Market

LOCAL MARKET 

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FKLI

FKLI Jul month dropped 10 points or 0.65% to closed lower at 1523. The FBM KLCI was range-bound over the early morning session as investors awaited some resolution to the ongoing tariffs saga following the latest volley of threats by US President Donald Trump.

The Dow Jones index dropped 436 points to closed lower at 44023 on previous session. The Nasdaq Composite closed at a fresh record high on Tuesday, lifted by a strong rally in heavyweight Nvidia. However, other major Wall Street indices declined as a key inflation report and a wave of bank earnings failed to spark investor enthusiasm. This marks the Nasdaq's fourth record close in five sessions, and the eighth since June 27.

The actively traded FKLI contract continues to trend within a broader downward channel on the daily chart, with key resistance seen at the 1,560–1,565 zone. On the hourly chart, the index is showing a downward bias, suggesting continued weakness. If the immediate support zone at 1,520–1,522 fails to hold, further downside movement toward 1,515–1,512 is likely. However, if this support range remains intact, we may see some buying interest emerging, although the upside appears limited for now. Immediate resistance is identified at the 1,527–1,528 level. Beware of any potential sentiment changes. Immediate support and resistance levels are identified at 1520 and 1528, respectively.

(News Source: The Star; Reuters)

Recommend Trading Plan:

Long positions may be opened above 1524 with targets at 1528/1533 and stop-loss at 1519

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

FCPO

FCPO Oct month dropped 78 points or 1.84% to closed lower at 4163. Malaysian palm oil futures declined by almost 2% on Tuesday, snapping a two-day winning streak, as traders engaged in profit-taking amid weaker export data.

CBOT soyoil active traded contract rose 0.40 points to closed higher at 54.40 on previous session. Dalian’s active palm oil contract dropped 46 points to close lower at 8708 on previous night session.

The actively traded FCPO contract has rolled over to the October 2025 contract starting today. On the daily chart, the contract continues to trade within an upward channel pattern, with key support identified at the 4,155–4,160 range—crucial for maintaining the current bullish bias.

On the hourly chart, prices remain within a minor upward channel. In the previous session, the price dipped to a low of 4,129 before rebounding, indicating continued support for an upside bias. Immediate support is seen at the 4,180–4,185 range; holding above this level could push prices toward 4,206 or potentially as high as 4,228. However, failure to hold this support may lead to a minor pullback, though downside is expected to be limited. Beware of any potential sentiment changes. The immediate support and resistance levels are pinpointed at 4186 and 4206, respectively.

(News Source: Reuters)

Recommend Trading Plan:

Long positions may be opened above 4186 with targets at 4206/4228 stop-loss at 4166

Short positions may be opened below 4186 with targets at 4158/4134 stop-loss at 4206

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.