FBM KLCI Futures Seen To Rebound Amid Oversold Conditions Next Week

By Fatin Umairah Abdul Hamid

KUALA LUMPUR, Oct 3 (Bernama) -- The FTSE Bursa Malaysia KLCI (FBM KLCI) futures contract is expected to remain range-bound next week, although its oversold condition could allow for a technical rebound, an analyst said.

Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said the 1,620 level is expected to serve as the immediate support zone, while a recovery above 1,650 could pave the way towards 1,660.

“The immediate direction would likely be influenced by Friday’s United States employment report, particularly its implications for the Federal Reserve’s (Fed) interest rate path and US Treasury yields.

“Thereafter, investors will turn their attention to the US ISM Services Purchasing Managers’ Index (PMI) on Monday and the minutes of the Fed’s September meeting on Wednesday, which should provide further clues on policymakers’ assessment of inflation and the need for additional tightening,” he told Bernama.

The FBM KLCI futures ended higher this week, tracking the stronger underlying cash market.

On a Friday-to-Friday basis, the October 2026 contract eased 32.5 to 1,622.5, the November 2026 contract stood at 1,623.0, the December 2026 contract erased 35 points to 1,629.0, and the March 2027 contract decreased 34 points to 1,613.5.

Weekly turnover narrowed to 133,799 lots from 145,235 lots last week, while open interest declined to 47,940 contracts on Friday from 145,426 contracts a week earlier.

Over the last week, the FBM KLCI decreased 40.75 points to settle at 1,630.87 yesterday.

-- BERNAMA