KLCI futures to trade higher next week
The FTSE Bursa Malaysia KLCI (FBM KLCI) futures contract is likely to trade better next week, tracking the stronger cash market, dealers said.
Affin Investment Bank vice president and head of retail research Dr Nazri Khan said the improved market sentiment would be supported by the recent US move to end the partial government shutdown as well as the upcoming 2014 Budget presentation by Prime Minister Datuk Seri Najib Razak on Friday.
The deal, which will see the world's largest economy avoid a debt default, would provide funding for the US government until January 15, 2014 and raise the debt limit until February 7, 2014.
"Hence, market sentiment should be supported by the US Federal Reserve which is likely to maintain its quantitative easing policy possibly to February 2014 (next debt limit deadline) before the US monetary officials feel comfortable enough to curtail stimulus," he told Bernama.
Nazri said such a scenario was likely to encourage more carry trades and spur more funds inflow into the emerging markets including Bursa Malaysia at least until the early part of 2014.
On a Friday-to-Friday basis, October 2013 and November 2013 rose nine points each to 1,798.5 each, December 2013 increased 9.5 points to 1,799 and March 2014 rose four points to 1,791.5.
Turnover dropped to 17,909 lots from 21,582 lots last Friday while open interest rose to 47,300 contracts from 46,374 contracts.
Meanwhile, the benchmark FBM KLCI improved 13.84 points to 1,799.59 compared with 1,785.75 last Friday.-- Bernama