Actually fkli can be used as a hedging tool for your portfolio. If your portfolio is huge and your average beta is very close to KLSE's you could actually use it to lock your portfolio from fluctuations. It isn't a perfect hedge but is an alternative for you if you do not want to liquidate your entire portfolio because of fluctuations. However you have to balance the number of short contract positions to your portfolio.

Actually FLKI is also used to create a market neutral position whereby you make the stock neutral to market influences but open only to the stock's strenghts, prospects and weakneses.

Another use for FLKI is for exiting very huge positions in the KLCI. If a fund wants to exit a position huge enough to influence the market, the fund could have short position and exit their funds. This is because if you exit huge positions your sale orders will not all be taken at a good price. The shortcoming is made up by your short positions in the FLKI.

Another use is by simmilar means as the above but purely for market manipulation. I am not elaborating on this.