THE FTSE Bursa Malaysia KLCI (FBM KLCI) futures contract on Bursa Malaysia Derivatives is likely to continue its downtrend next week, taking the cue from the underlying cash market.
Bank Islam chief economist Dr Mohd Afzanizam Abdul Rashid said the market is likely to be preoccupied with economic data, which has been dismal so far, with the market bracing for a gloomy projection of the US’ first quarter gross domestic product (GDP), set for release next week, which is expected to show a contraction.
“The government has announced that the movement control order (MCO) will be extended for another two more weeks (April 29-May 12). At the same time, more economic sectors are expected to be reopened gradually,” he told Bernama.
He said the markets will be watching on that space in order to gauge how domestic demand would play out as the country progresses through the year.
On a baFriday-to-Friday sis, spot month April 2020 slipped 37 points to 1,370.5, May 2020 decreased 37.5 points to 1,364.5, while June 2020 and September 2020 fell 36.5 points each to 1,358.5 and 1,351, respectively.
Turnover for the week improved to 70,355 lots from 47,648 lots in the previous week, while open interest widened to 43,583 contracts versus 36,327 contracts previously.
On a Friday-to-Friday basis, the FBM KLCI was 37.49 points weaker at 1,369.85 from 1,407.34 previously. – April 25, 2020, Bernama
