FBM KLCI FUTURES LIKELY TO TRADE LOWER NEXT WEEK

KUALA LUMPUR, Nov 21 (Bernama) -- The FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) futures on Bursa Malaysia Derivatives are expected to trade lower next week in line with the bearish outlook for the cash market.

"Much depends on the movement of Wall Street and its global effect," said a dealer, adding that investors are cautious on the market being overdone.

On the local front, he said the country's positive economic growth figure could help to boost the market but it will not be enough to lift overall sentiment.

The economy registered an improvement in the third quarter with a reduced contraction of 1.2 per cent in the third quarter of 2009 compared with a 3.9 per cent decline in the second quarter amid positive growth in domestic demand and stabilisation of external demand.

This brings the overall growth for nine months to -3.8 per cent.

On a week-to-week basis, November 2009 contract shrank two points to 1,271.0, December 2009 slipped 2.5 points to 1,271.0, March 2010 fell four points to 1,273.0 and June 2010 edged down 1.5 points to 1,277.5.

Turnover for the week was lower at 18,594 lots from 24,458 lots last week. Open position on Friday was 24,450 contracts, up from the 16,719 contracts at the end of the previous week.

On a Friday-to-Friday basis, the FBM KLCI was up 3.4 points to 1,274.36. -- BERNAMA

SM MR