KLCI futures to trend lower
KUALA LUMPUR, Aug 15 — The FTSE Bursa Malaysia KLCI (FBM KLCI) futures contracts (FKLI) on Bursa Malaysia Derivatives are expected to trend lower next week.
Affin Hwang Investment Bank Vice-President and Head of Retail Research Datuk Dr Nazri Khan Adam Khan told Bernama the benchmark index failed to stage a rebound rally last week to reclaim its position above the crucial 1,600-point psychological level, which indicated more downside ahead.
“We generally see a corrective bargain-hunting bounce instead of market reversal as trading volume and market breadth remain negative.
“This is confirmed by all key moving averages and stochastic indicator which remain in the selling zone and suggest more consolidation ahead,” he said.
Nazri Khan said intermarket analysis also suggested a weak catalyst with key commodities such as oil and gold and anchor sectors such as finance, service and technology remaining in downtrend mode.
Investors remain pessimistic over the market direction with the key momentum indicators still relatively flattish, suggesting weak buying interest.
For the week just-ended, the FKLI was mostly lower weighed by the weaker cash market amid adverse external sentiment which saw the futures market trading in range of between 1,543 and 1,641.5.
On week-to-week basis, August 2015 declined 16.5 points to 1,582.5, September 2015 eased 41 points to 1,570, December 2015 decreased 40.5 points to 1,553 while March 2016 fell 100.9 points to 1,543.
Turnover for the week rose to 70,697 lots from 42,856 lots, while open interest increased to 60,658 contracts from 56,901 contracts previously. — Bernama
