FBM KLCI Futures Set For Bargain Hunting Next Week On US-China Trade Truce Extension

KUALA LUMPUR, Sept 26 (Bernama) -- The FTSE Bursa Malaysia KLCI (FBM KLCI) futures contract is expected to attract bargain-hunting interest next week, supported by the extension of the US-China trade truce by another two months.

IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said the extension reduces the immediate risk of another round of tariff escalation before year-end and provides greater visibility for businesses and supply chains. 

“Improved risk appetite following the extension of the trade truce could provide room for the index to rebound, although elevated oil prices and global bond yields remain key downside risks. The index is also trading closer to its recent year-to-date low of 1,656.83, which could encourage selective bargain hunting in fundamentally strong large-cap counters following the recent pullback,” he said in his daily market update on WhatsApp Channels.

However, Mohd Sedek reckons that any near-term recovery is likely to remain selective rather than broad-based, as investors continue to monitor global bond yields, oil prices and foreign fund flows.

The FBM KLCI futures ended lower this week, tracking the weaker underlying cash market.

On a Friday-to-Friday basis, the September 2026 contract gained 18.5 points to 1,661.5, while the October 2026 and March 2027 contracts both gained 12.5 points to 1,655.0 and 1,647.5, respectively. The December 2026 note added 14.5 points to 1,664.0.

Weekly turnover surged to 145,235 lots from 27,714 lots last week, while open interest spiked to 145,426 contracts on Friday from 48,164 contracts a week earlier.

Over the last week, the FBM KLCI increased 6.06 points to settle at 1,671.62 yesterday.

-- BERNAMA