How to perform FBM KLCI magic

Do you know what they mean by saying, "Oh, the market is going to do magic after this. "They are jokingly referring to the event when the CI was down, say between -8 to -12 point for the whole day, but when it come to close time, it is on positive side, say +2 pt. How to do the same magic?


You already know how the tricks is done, anyway here is the refreshment tutorial:

First we need to select certain specific stocks . Be aware that how impressive the magic effect will be, depends on how much of your fund you willing to allocate.

Now, with smaller no. of component counters in FBM KLCI we can do the magic slightly easier than last time. It used to be 100 now its only 30 to choose from.

Out of those 30 counters, we can narrow down to just 10 counters which give a total 71% index controlling power.


Those 10 counters are: Commerce, Maybank, Public Bank, Sime, IOI, Genting, Resorts, Axiata, Tenaga and MISC.

With limited fund, it still out of reach for us. In that case, we can narrow down to only 5 counters which give us 55% index controlling power. Those 5 giants are: Commerce, Public Bank, Sime, Maybank and Tenaga.


Those 5 are the 'sweet spot' to optimize our fund budget.

Now, buy and queue as many lot of those counters at much higher price after 4.39 pm. Make sure many lot of trade done at price higher than the whole day price. We can stop doing that at 4.50 pm, the theoretical closing price already decided after 4.50 pm.

That's how you do magic with FBM KLCI.
Smooth and easy.


If you still don't have enough fund, you can try with one counter only. Commerce gives you 10.2% index controlling power. Less index controlling power means the magic effect will not that impressive but still you can try. If 29 other component counter stay at yesterday close price or they canceling each other gain/loss, a 10 cent gain in Commerce will roughly add 6.5 pt to KLCI .

What? Your fund still not enough even for one counter?
Too bad, you are not EPF.

BTW, congratulate yourself for trying to be some smart money. Just like they say, "Dumb money (less informed investor) decides on opening, smart money (well informed investor) decides on closing."