11/06/2012 (Bernama) - The FBM KLCI futures contracts on Bursa Malaysia Derivatives are expected to trend lower next week on the back of volatile market conditions.

Dealers said global stocks would be pressured by uncertainty about the global economic recovery.

Affin Investment Bank Head of Retail Research Dr Nazri Khan told Bernama that China's unexpected interest rate cut and no concrete plans for new monetary stimulus by the US Federal Reserves would continue to weigh down market sentiment.

"Our bearish view is also supported by softer commodities with gold falling more than two per cent to US$1,585 an ounce, brent crude oil closing 1.2 per cent lower to US$99 a barrel and crude palm oil declining 2.5 per cent to RM2,964 per tonne," he said.

For the week just ended, the FBM KLCI futures contracts moved in line with bearish equity markets.

On a Friday-to-Friday basis, June 2012 added 3.5 points to 1,573.5, July 2012 rose seven points to 1,574, September 2012 gained five points to 1,569 and December 2012 improved 3.5 points to 1,562.5.

Turnover decreased to 33,795 lots from 95,907 lots previously while open interest rose to 27,369 contracts from 17,580 contracts last Friday.