I stopped updating Stock Market Update since 1 July 2011. Why? I started these posts to study FKLI. But I found out that FBM KLCI does not actually follow other region stock markets like US, Europe or Asia. If US stock markets dropped, FBM KLCI does not follow the dropping trend too while most other region stock markets do. So no point to waste time to post it. And I don’t think other people would like to read it too. But it does have 1 good thing ~ it forces me to study the market everyday. Without posting it, I might not study at all…

Nope, I should not stop my study on FKLI here. And will look for other pointers that really can be counted that affect the up / down trend of FKLI. Hmm… Do you know any?

Most of the 30 KLCI index components will have its quarterly financial report coming out this month ~ May. Some of them like BAT, DIGI, PBBANK and TENAGA already released quarterly financial report last month. DIGI and PBBANK are doing great on the latest financial report but BAT and TENAGA failed to impress. The coming quarterly financial reports will determine the direction of KLCI ~ up or down. Of course, other region stock markets will affect KLCI too.

30 KLCI index components quarterly financial report date (week in May)

1. AMMB – 2
2. AXIATA – 3,4
3. BAT – July
4. CIMB – 2,3
5. DIGI – July
6. GAMUDA – June
7. GENM – 4
8. GENTING – 4
9. HLBANK – 2,4
10. HLFG – 2,4
11. IOICORP – 2
12. KLK – 4
13. MAS – 3,4
14. MAXIS – 4
15. MAYBANK – 2,3
16. MISC – 2
17. MMCCORP – 4
18. PBBANK – July
19. PCHEM – May ??
20. PETDAG – 4
21. PETGAS – 2,3
22. PLUS – 2,3
23. PPB – 3,4
24. RHBCAP – 3,4
25. SIME – 4
26. TENAGA – July
27. TM – 3,4
28. UMW – 2,3
29. YTL – 2,3
30. YTLPOWR – 3,4

Only 1 quarterly financial report left on June from GAMUDA. Therefore, FKLI direction is based on US, Europe, Asia financial conditions from June onward until the next round of quarterly financial report. Will FKLI going up?

Err… I thought that I don’t need to pay education fee for FKLI. But I was wrong. I am still very young on this futures market. Paid my very first fee ~ RM2710 on it. Lost 10 points on 5 lots. Bought at 1514.5 on 5 May and sold at 1504.5 on 6 May early morning. KLCI dropped to 1507.5 while FKLI dropped to 1497.5. And I forecast KLCI will keep dropping so I have to cut loss. But it end up on the other way around today. Thanks to US stronger than expected jobs report.

FKLI is priced almost the same as KLCI right now. No more 10 points discount like previous 2 days. From technical point of view, KLCI is still weak, but might gain if follow other region up trend.

Will I continue to trade even after paying such large amount of fee? Yes, but will be more careful and mature during making long / short decision. And do more homework…

Finally, I made my very first step on FKLI investment. Being studying and watching the FKLI index went up and down for the past 1 month. I found out 1 thing ~ you can’t do day trade with phone call. The price goes up or down too fast before you manages to get your stock dealer. And here go your desired price. So I signed up an online account. It is much easier and faster compare to phone call.

FKLI ~ 2011-05-03

FKLI has around 5 points discount when compare to KLCI. People do not look good on the near market. So I took the chance to short FKLI at 1530 at 10am. Planned to buy back at 1525. But it went back to 1528.5 from 1526.5. So I placed buy call on 1527 at the end. Finally, it matched and I earned RM500 after deducted RM250 service charges (5 lots). But the FKLI went to 1524 after I bought it. Err… The KLCI is better than morning at 1532 ~ 8 points discount. Wow…

Lesson learns. Set your own target, and don’t change it unless special event happen like Japan earthquake incident.

Yup, just got a confirmation from OSK acting branch manager that no income tax on stock capital gain and future option trade in Malaysia. Why I need a confirmation? My dealer told me that gain from future option like FKLI and CPO need to declare as income and due to personal income tax. Same apply to capital gain in stock market. Huh? Is that true? I knew that there is no income tax for capital gain from stock all the while but my dealer really confused me. Luckily, I got these clear up. So…

No income tax on stock capital gain and future option trade in Malaysia!

It’s time to ‘play’ future option more because blogging earning which will be taxed is getting lesser after Google Panda update. I will focus more on my final goal ~ investor.