Sunday, September 9, 2012

EPF, KWAP continuing to support FGV?

Should I call it support or should I deem it as buying from opportunities? If you read the EPF's Chairman's statement, he calls it buying from lower price opportunity. I beg to differ in some cases. Do look at the trend below. EPF has been buying FGV daily. If I am buying smartly, I would let the share price drop rather than continuing purchase.

If I put the trend into a chart, please see below.

EPF, KWAP's purchase have been on uptrend while FGV's shares on downtrend
As an investor (value that is), I may sometimes continue to buy the shares on its downtrend. Of course, you can't call me supporting the share price as I only buy in small quantities. However, both EPF and KWAP have been buying a huge percentage of FGV's daily trade. Remember in my previous article, find out who have been provided IPO shares of FGV (read those). These trend are seen in IHH's IPO as well together with another upcoming large IPO in Astro. I could not wait when the lock up period is over when the cornerstone investors are allowed to sell (especially IHH). Will these shares be bought in even larger quantities then by these pension funds?

I am just wondering (can I call it) are large funds being used to support these stocks? Is this the reason why large Malaysian IPOs have been doing well? Who are to lose from here - you tell me.


Bn911 said...

So pity with our hard-earned money, no wonder they keep wan to extend minimum age to withdraw our money.

keano said...

EPF should be able to make their own decision independently and not to function as a price stabilization mechanism for certain parties to generate feel good factor in Malaysia.

graph cut said...

Totally agree with your view.
I believe this action by EPF and KWAP will be continuous until the next GE being called.