Kuala lumpur: The FTSE Bursa Malaysia KLCI (FBM KLCI) futures are anticipated to trade with an upward bias next week, aligned with the cash market, an analyst indicated.

According to BERNAMA News Agency, Mohd Sedek Jantan, the director of investment strategy and country economist at IPPFA Sdn Bhd, stated that the market is projected to remain constructive, though investors might become increasingly selective in their choices.

Mohd Sedek highlighted that several key factors, such as the FBM KLCI's 1,740 level, US Treasury yields, Brent crude prices, and foreign fund flows, will play a significant role in determining the sustainability of the market's upward trajectory. Furthermore, he noted that the direction of global bond yields will remain crucial, especially for Malaysian banks, as higher yields could impact banking valuations and exert pressure on funding costs and net interest margins (NIM).

The performance of Malaysian banking stocks is likely to hinge on greater stability in global bond yields, backed by resilient domestic earnings and improving investor flows. For the week just ended, the FBM KLCI futures concluded mostly on a higher note. On a Friday-to-Friday basis, the August 2026 contract increased by 15.5 points to 1,741.5, while the September 2026 contract gained 15 points to 1,720. The December 2026 and March 2027 contracts each saw an increase of 13.5 points, closing at 1,720 and 1,702.5, respectively.

Weekly turnover experienced growth, rising to 41,237 lots from 30,907 lots in the previous week. Open interest also saw an increase, climbing to 48,670 contracts from 41,862 contracts at the end of the last week. On a Friday-to-Friday basis, the FBM KLCI rose by 9.09 points, reaching 1,736.48 from 1,727.39 the previous week.