Saturday, February 19, 2011

What EPF did last quarter?

I reproduced and provided some additional analysis on the EPF investment numbers to study its portfolio by value. Here they are:

Note that based on the Top 30 holdings, their total investment value was RM74.76 billion. Their most significant increase in investment by percentage was IJM Corporation (+2.23%) while they sold 6.33% of RHB Capital which tells that there is a probability of EPF reducing their significance in being the largest shareholder in RHB. However, EPF remains to hold large stakes in Malaysian banks - i.e. all 4 of the Top Malaysian banks - Maybank, CIMB, RHB, Public. Talk about stocks picking! They don't do that aren't they?
During the same period, KLCI improved from 1,463.50 to 1,518.91, an improvement of 3.79%. By my counting, EPF was a net seller. (Although I may not have the full details of what they do, my analysis was based on what they report which is the top 30 investments only.) Anyway, it may be good enough to see what EPF was doing.
From their action, I would commend on them, as they were selling at the time when the investment value was on the up. (This does not mean that I agree that they put so much money in the Malaysian equity market.)
From the behavior that is reflected by EPF, would my guess of EPF being the most significant vehicle which will support the market when it comes down, while they will be selling when the market is performing better - be true?
Another barometer that you are seeing is that EPF holds more than 12% in 17 of the FTSE KLCI 30 companies (see the 2nd and 3rd column). That I would say they have their hands in a lot of our Malaysian large cap companies!

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