Kuala lumpur: The FTSE Bursa Malaysia KLCI (FBM KLCI) futures contract on Bursa Malaysia Derivatives is projected to trade cautiously in the upcoming week, reflecting the performance of the underlying cash market.

According to BERNAMA News Agency, Rakuten Trade Sdn Bhd's vice-president of equity research, Thong Pak Leng, indicated that the market sustains a cautiously optimistic outlook due to the fair valuations of local stocks.

Thong noted that while valuations for stocks in the United States are currently overstretched, Asian stocks offer comparatively cheaper alternatives. He explained that as investors shy away from the high valuations in the US technology sector, they might turn their attention to regional markets that present more reasonable pricing, solid earnings visibility, and supportive macroeconomic conditions.

Thong emphasized that Malaysia could potentially benefit from this shift due to its defensive sector composition and improving domestic sentiment. He suggested that bargain hunting could prevail, with the index expected to trade within the 1,620-1,650 range for the next week.

On a weekly basis, the November 2025 contract saw a slight decrease of one point to 1,623.5, while the December 2025 contract dipped half a point to 1,623.5. Conversely, the March 2026 contract increased by half a point to 1,606.5, and the June 2026 contract rose by 1.5 points to 1,611.0.

Throughout the week, turnover saw an increase to 37,102 lots from the previous 35,662 lots, and open interest grew to 50,184 contracts compared to 48,367 contracts previously. From a Friday-to-Friday perspective, the FBM KLCI climbed 6.54 points, reaching 1,625.67 from the prior week's 1,619.13.