22 Jul 2025 BMD Local Market

LOCAL MARKET 

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FKLI

FKLI Jul month dropped 2.5 points or 0.16% to closed lower at 1525. The FBM KLCI ended slightly lower on Monday, bucking gains in regional markets, as profit-taking in select blue chips dragged the FBM KLCI into the red.

The Dow Jones index dropped 19 points to closed slightly lower at 44323 on previous session. Wall Street stocks climbed on Monday, while Treasury yields eased ahead of a packed week of corporate earnings. Investors also kept a close eye on intensifying tariff negotiations between the U.S. and its trade partners ahead of the looming August 1 deadline. All three major U.S. indices posted gains, diverging from European markets. Meanwhile, gold hit a five-week high, and the U.S. dollar weakened against the yen following Japan’s weekend elections.

The actively traded FKLI contract continues to trend within a broader downward channel. On the hourly chart, the index recently experienced technical buying after testing the support zone at 1502–1500. However, it encountered resistance near the 1530–1527 range and has since pulled back. Moving forward, we expect the index to remain in a neutral, sideways consolidation. Key support lies at 1520–1519; holding above this level could trigger renewed buying interest. A break below, however, may lead to further downside toward the 1515–1514 zone. Beware of any potential sentiment changes. Immediate support and resistance levels are identified at 1519 and 1525, respectively.

(News Source: The Star; Reuters)

Recommend Trading Plan:

Long positions may be opened above 1519 with targets at 1525/1531 and stop-loss at 1514

Short positions may be opened below 1519 with targets at 1514/1509 and stop-loss at 1524

FCPO

FCPO Oct month dropped 90 points or 2.09% to closed lower at 4225. Malaysian palm oil futures ended lower on Monday, retreating from the prior session’s gains, weighed down by declining soyoil prices and subdued export data.

CBOT soyoil active traded contract rose 0.23 points to closed higher at 55.82 on previous session. Dalian’s active palm oil contract dropped 34 points to close lower at 8924 on previous night session.

The actively traded FCPO contract continues to trend within an upward channel on the daily chart. However, the price failed to sustain above the 4,240–4,245 range, which now acts as a resistance zone. The new immediate support is identified at the 4,205–4,200 level. We expect a period of mild upward consolidation, potentially retesting the resistance at 4,260–4,265. A successful breakout above this level could lead to further upside. Conversely, if the price fails to breach the resistance, a technical pullback toward the 4,205–4,200 support range is likely. Beware of any potential sentiment changes. The immediate support and resistance levels are pinpointed at 4220 and 4242, respectively.

(News Source: Reuters)

Recommend Trading Plan:

Long positions may be opened above 4242 with targets at 4267/4292 stop-loss at 4222

Short positions may be opened below 4242 with targets at 4220/4198 stop-loss at 4262

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.