Kuala Lumpur:The FTSE Bursa Malaysia KLCI (FBM KLCI) futures contract is expected to see increased bargain-hunting activity next week, buoyed by the US-China trade truce being extended by two months.
According to BERNAMA News Agency, IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan indicated that this extension reduces the risk of another tariff escalation before the year ends, offering businesses and supply chains more clarity.
The improved risk appetite from the trade truce extension might create an opportunity for the index to rebound. However, Mohd Sedek highlighted that elevated oil prices and global bond yields continue to pose potential downside risks. The index is nearing its recent year-to-date low of 1,656.83, which may promote selective bargain hunting in large-cap stocks with strong fundamentals following recent declines.
Despite these opportunities, Mohd Sedek believes that any near-term recovery will likely be selective rather than widespread, as investors remain vigilant regarding global bond yields, oil prices, and foreign fund flows.
The FBM KLCI futures concluded the week on a lower note, mirroring a weaker underlying cash market. From Friday to Friday, the September 2026 contract rose by 18.5 points to 1,661.5, while the October 2026 and March 2027 contracts increased by 12.5 points each to 1,655.0 and 1,647.5, respectively. The December 2026 contract added 14.5 points to reach 1,664.0.
Weekly trading volume jumped to 145,235 lots from 27,714 lots the previous week, with open interest climbing to 145,426 contracts on Friday from 48,164 contracts a week earlier. Over the past week, the FBM KLCI rose by 6.06 points, settling at 1,671.62.