Indicators

When deciding whether to buy or sell, there are many indicators you can look at. Generally, these indicators can be divided into Fundamental Analysis and Technical Analysis.

Fundamental Analysis is the news, datas and information relating to the market. If you are a serious investor or a veteran professional, you will probably require more extensive or detailed information and datas to support your views or decisions. But if you are a beginner, it is sufficient to look at the current news and what's happening in the local and foreign markets.

Dow Jones - This is the best way to start your fundamental analysis in the morning. The reason is US market has just closed when we wake up in the morning here in Malaysia. Therefore, the Malaysian market is likely to react to the Dow Jones first thing in the morning. If the Dow Jones drops, FKLI and FCPO is more likely to drop too. Otherwise, there may be other factors to consider too.

As such, you can proceed to market news on Europe, China, Asia and the local news. You may also look at the US soybean market as this may affect the FCPO price. If the FKLI/FCPO price is not following the global market, there is possibly something happening in the local market that is affecting the FKLI/FCPO price.

The following examples can serve as a useful guide :-

Example 1 :  19/9/2011
                     Stocks on Bursa Malaysia ended broadly lower on foreign selling following rumours
                     that Greece might default on its sovereign debt and Italy's credit rating was lowered
                     Standard & Poor's from A+ to A.
                     FKLI opened at 1430, closed at 1405.5. Down 24.5 points (RM1225).
Example 2 :  21/9/2011
                     FKLI closed higher on Wednesday after economic indicators signaled growth in China
                     is withstanding Europe's debt crisis and faltering US economy.
                     FKLI opened at 1405 , closed at 1417.5. Up 12.5 points (RM625).