This is the last "very-short" write-up series ahead of FBM KLCI launching on Monday, 6th July 2009.
i) FBM KLCI stocks' elect as measured by PE(x) ratio. - "the level of market confidence on the stock" (see attached for others stock market ratio, yes plenty of numbers!)
p/s please take note that stock market ratio like, PE ratio, is best compared to its peers in the same industry.
ii) FBM KLCI ...other highlights and trivial
1) Large concentration of financial and plantation related stocks, almost 55% of market total weightage. Besides banking performance, CPO trend or even crude oil, due to its recent strong positive correlation with CPO, will have a greater influence in deciding the index’s direction.
2) Now you can buy “a stock” via ETF to match the FBM KLCI performance. The current FBM30etf will track FBM KLCI when it is launched. If you are a fan of "bluechips" stock, you can buy a basket of their shares via FBM30etf and hedge your position via FKLI when, and if, the market trends lower.
3) FKLI final settlement value calculation for July09 contracts and onwards will be based on FBM KLCI. FSV calculation is : FBM KLCI data taken from 3:45:15 pm to 4:45:00 pm plus the closing data at 5 pm. It is a simple average of the total 235 values (after taken out 3 highest and 3 lowest values).
4) FBM KLCI will broadcast its index value every 15 seconds vs.. KLCI's every 1 minute. So, there will be less slippage during the day but a big move in the preclosing phase can still happen.
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