FBM KLCI Futures Fall, Cash Market Ends Flattish

The FTSE Bursa Malaysia KLCI (FBM KLCI) futures contract on Bursa Malaysia Derivatives ended lower today, mirroring the performance of the underlying cash market. The spot month July 2024 fell by 1.0 points to 1,639.0, while August and September 2024 contracts declined by 1.5 points each to 1,642.0 and 1,626.0, respectively. The December 2024 contract slid by 2.5 points to 1,631.5. Turnover dwindled to 5,865 lots from 7,498 lots on Wednesday, and open interest decreased to 50,969 contracts from 52,696 contracts previously.

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Despite this decline in futures, the FBM KLCI edged up 0.27 of a point to 1,633.81 at the close, recovering from earlier losses amid a weaker broader market. This slight uptick followed a fresh three-year high the previous day, driven by profit-taking activities. The benchmark index opened higher at 1,633.70 and traded within a range of 1,627.93 to 1,634.24 throughout the day. On the broader market, the number of losers significantly outpaced gainers, with 727 decliners compared to 499 gainers, and 503 counters remained unchanged.

FBM KLCI Futures

The mixed performance of regional markets influenced investor sentiment on Bursa Malaysia. UOB Kay Hian Wealth Advisors noted that despite geopolitical concerns, the overall sentiment towards the Malaysian market remained robust. The resilience of Asian markets despite geopolitical tensions following comments from former US President Donald Trump on Taiwan and potential policy changes from President Joe Biden is also noted.

The morning session saw the FBM KLCI ease by 1.61 points to 1,631.93. The technology sector faced selling pressure, shedding 2.04 points or 2.58% to 77.19. Malacca Securities Sdn Bhd anticipated mild profit-taking in technology stocks, with potential rotation into value stocks. They also highlighted the potential buy-on-dip opportunities in sectors like construction, utilities, building materials, and property due to data centre catalysts. The gloves and shipping sectors were also noted for their potential, particularly the latter due to ongoing tensions in the Red Sea.

Investors were also keeping an eye on the upcoming US jobs data, which could influence market movements further. The turnover for the day increased to 5.49 billion units worth RM4.22 billion from Wednesday’s 5.28 billion units worth RM3.87 billion, indicating active trading despite the mixed market sentiments.