FKLI vs KLCI

Monday, April 8, 2013

Many of you may not know about FKLI. Here is the Contract Specification where I copied and pasted from bursamalaysia.com:

Contract Code	FKLI
Underlying Instrument	FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI)
Contract Size	FBM KLCI multiplied by RM50
Minimum Price Fluctuation	0.5 index point valued at RM25
Daily Price Limits	20% per trading session for the respective contract months except the spot month contract. There shall be no price limits for the spot month contract. There will be no price limit for the second month contract for the final five Business Days before expiration.
Contract Months	Spot month, the next month and the next two calendar quarterly months. The calendar quarterly months are March, June, September and December.
Trading Hours	First trading session: Malaysian time 8:45 a.m. to 12:45 p.m. Second trading session: Malaysian time 2:30 p.m. to 5:15 p.m.
Final Trading Day	The last Business Day of the contract month.
Final Settlement	Cash Settlement based on the Final Settlement Value.
Final Settlement Value	The Final Settlement Value shall be the average value, rounded to the nearest 0.5 of an index point (values of 0.25 or 0.75 and above being rounded upwards), taken at every 15 seconds or at such intervals as may be determined by the Exchange from time to time from 3.45:30 p.m. to 4.45:15 p.m. plus one value after 5.00pm of the FBM KLCI on the Final Trading Day excepting the 3 highest and 3 lowest values.
Speculative Position Limit	Maximum number of net long or net short positions to be held: 10,000 contracts for all months combined

From my study on Composite Index found that it almost time for her to rest ,if so FKLI will drop too or move against CI. If it break up above 1697 come down beware , below 1688 be alert below 1680 if still hold long ,this is not my way. I don't know what announcement me base on chart reading only.By the way if CI able to hold above 1700 and move up will be another 2 days to go north else will move downtrend.

If CI drop intraday 1682 will have support , so happen drop below 1680 beware, SPOT MTH if 1679 able to hold I think it still strong. CI at 1706 may have some resistance. FKLI at 1711 will have resistance follow by 1728. We need to understand and learn FKLI. It is just a shadow of COMPOSITE index , go learn Composite Index because it got 30 link counters:

Constituent Name Stock Code
AMMB Holdings 1015
Astro Malaysia Holdings 6399
Axiata Group 6888
British American Tobacco (Malaysia) 4162
CIMB Group Holdings 1023
Digi.com 6947
Felda Global Ventures Holdings 5222
Genting 3182
Genting Malaysia 4715
Hong Leong Bank 5819
Hong Leong Financial 1082
IHH Healthcare 5225
IOI 1961
IOI Properties Group 5249
Kuala Lumpur Kepong 2445
Malayan Banking 1155
Maxis 6012
MISC 3816
PETRONAS Chemicals Group 5183
Petronas Dagangan 5681
Petronas Gas 6033
PPB Group 4065
Public Bank 1295
RHB Capital 1066
SapuraKencana Petroleum 5218
Sime Darby 4197
Telekom Malaysia 4863
Tenaga Nasional 5347
UMW Holdings 4588
YTL Corp 4677