Kuala Lumpur: The FTSE Bursa Malaysia KLCI (FBM KLCI) futures contract on Bursa Malaysia Derivatives is anticipated to reflect the performance of the underlying cash market due to ongoing global market uncertainty.

According to BERNAMA News Agency, Rakuten Trade Sdn Bhd’s equity research vice-president, Thong Pak Leng, indicated that the prevailing risk-off sentiment, triggered by Israel’s strikes on Iran and escalating tensions in the Middle East, is expected to pressure the market in the coming week.

AmInvestment Bank Bhd head of research Paul Yap Ee Xing noted that Washington’s announcement of unilateral tariffs contributes to existing global trade uncertainties and encourages a risk-off approach among investors. Yap highlighted that while regional markets are showing mixed trends, Bursa Malaysia could potentially diverge depending on local developments. However, in the absence of a clear domestic catalyst, investors are expected to remain on the sidelines until broader clarity is achieved.

Yap further explained that external factors, such as the United States inflation data and ongoing tensions in the Middle East, significantly influence market behavior by affecting the flow of global risk capital. The market’s future direction will largely depend on the evolution of trade negotiations and whether tensions between Iran and Israel escalate further, both of which could have far-reaching implications for investor sentiment and sector performance.

On a Friday-to-Friday basis, the June 2025 contract increased by 5.5 points to 1,512.0, the July 2025 contract improved by 6.0 points to 1,510.5, the September 2025 contract gained 4.5 points to 1,492.0, and the December 2025 contract added three points to 1,497.5. Weekly turnover narrowed to 22,132 lots from 23,669 lots in the previous week, while open interest expanded to 40,297 contracts from 37,381 contracts previously. The barometer index rose 1.32 points to 1,518.11 from 1,516.79 a week earlier.