Kuala Lumpur:The FTSE Bursa Malaysia KLCI (FBM KLCI) futures contract is anticipated to trade with a cautious upside bias in the coming week, driven by potentially attractive valuations that could spur selective bargain hunting amidst fragile investor sentiment.

According to BERNAMA News Agency, Thong Pak Leng, vice-president of equity research at Rakuten Trade Sdn Bhd, suggested that while selective bargain hunting may support a gradual recovery, factors such as geopolitical uncertainties, elevated energy prices, and volatile bond yields might restrict the potential gains.

Thong Pak Leng has forecasted that the FBM KLCI may fluctuate within a range of 1,600 to 1,630 in the upcoming week. This projection comes as the FBM KLCI futures ended mostly higher this past week, in line with a stronger underlying cash market.

On a Friday-to-Friday basis, the October 2026 contract declined by 15.0 points to 1,607.5, while the November and December 2026 contracts each fell by 14 points to 1,609.0 and 1,615.0, respectively. The March 2027 contract also saw a decrease, dropping 13 points to 1,600.5.

Weekly trading turnover significantly decreased to 38,472 lots from 133,799 lots the previous week, and open interest reduced to 46,870 contracts on Friday from 47,940 contracts a week earlier. Over the last week, the FBM KLCI slipped by 22.42 points, closing at 1,608.45 compared to 1,630.87 a week earlier.