Kuala Lumpur: The FTSE Bursa Malaysia KLCI (FBM KLCI) futures contract on Bursa Malaysia Derivatives is expected to see cautious trading next week due to market uncertainty, said an analyst.

According to BERNAMA News Agency, Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng stated that investors are likely to adopt a defensive strategy in light of the current market conditions. This approach focuses on large-cap stocks with robust fundamentals, low volatility, and high dividend yields, particularly within the banking, plantation, and real estate investment trust sectors.

Thong elaborated on the technical aspects, highlighting that while the FBM KLCI traded lower during the week, it remained above 1,545, indicating potential support. The widening exponential moving average (EMA) gap suggests caution, yet the index’s proximity to a strong support zone increases the likelihood of a rebound. It is expected to trade within the 1,540-1,570 range in the coming week.

For the recently concluded week, the March 2025 contract saw a decline of 24.5 points to 1,517.0, with the new month April 2025 at 1,519.5. The June 2025 contract slipped 23.5 points to 1,522.0, and the September 2025 contract fell 21.0 points to 1,511.0. Turnover dropped significantly to 38,095 lots from 180,892 lots in the previous week, while open interest decreased to 41,973 contracts from 49,479 contracts previously.

On a Friday-to-Friday basis, the key index fell 27.43 points to 1,547.27 compared with 1,574.70 a week earlier.