4 Aug 2025 BMD Local Market

LOCAL MARKET 

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FKLI

FKLI Aug month rose 11 points or 0.72% to closed higher at 1529.   Bursa Malaysia closed higher on Friday, bucking regional trends, as investor sentiment improved following the US decision to cut tariffs on Malaysian exports to 19% and the unveiling of the 13th Malaysia Plan.

The Dow Jones index dropped 542 points to closed lower at 43588 on previous session. U.S. stocks tumbled on Friday, with the S&P 500 posting its sharpest daily percentage drop in over two months, as fresh U.S. tariffs on numerous trading partners and a weaker-than-expected jobs report fueled heavy selling pressure.

The actively traded FKLI contract remains within a broader downward channel, with the market opening lower in line with the sharp drop on Wall Street overnight. On the hourly chart, movement appears mostly sideways but with a bearish bias. Immediate resistance is seen at 1524–1526; trading below this zone is likely to maintain downside pressure. We continue to favor a sell-on-rebound strategy as our main plan. Key support lies at 1510–1509. However, if the index manages to break above the resistance zone, it could move higher, though with limited upside, potentially reaching 1527–1528. Beware of any potential sentiment changes. Immediate support and resistance levels are identified at 1518 and 1524, 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 1518/1514 and stop-loss at 1529

FCPO

FCPO Oct month rose 15 points or 0.35% to closed higher at 4245. Malaysian palm oil futures ended higher on Friday, buoyed by a weaker ringgit and the U.S. decision to cut tariffs on Malaysian goods. However, the contract still recorded its second consecutive weekly loss.

CBOT soyoil active traded contract dropped 0.84 points to closed lower at 53.90 on previous session. Dalian’s active palm oil contract dropped 110 points to close lower at 8784 on previous night session.

The actively traded FCPO contract remains within an upward channel on the daily chart, rebounding back above 4230–4235 after touching a low of 4193. The 4230–4235 zone now serves as the nearest support, while the crucial support remains at 4200–4195. On the hourly chart, the market is likely to test the lower boundary of this sideways range at 4200–4195, pressured by negative sentiment in the rival oil markets. A break below this zone could drive prices further down toward 4185, and potentially to 4159. If the support holds, sideways trading is expected to continue. On the upside, key resistance is seen at 4245–4250. Beware of any potential sentiment changes. The immediate support and resistance levels are pinpointed at 4208 and 4230, respectively.

(News Source: Reuters)

Recommend Trading Plan:

Long positions may be opened above 4208 with targets at 4230/4254 stop-loss at 4188

Short positions may be opened below 4208 with targets at 4185/4159 stop-loss at 4228

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.