Friday, January 11, 2013
Felda Global Venture Holding Berhad
Today found some article from one (as I wish keep neutral on political view in my post, I will not say who is the one in this post) questioning the action from Employees Provident Fund (EPF) and Retirement Fund Incorporated (KWAP) buying the Felda Global Venture Holding Berhad (FGV) share recently.
The one claiming that at the current price of RM4.60, EPF would have suffered a paper loss of RM40 million from purchasing 90 million shares at RM5.05. KWAP, which acquired 59 million shares at RM5.19, would have suffered a paper loss of RM35 million. They also question that if “a significant portion of purchase which is against analyst recommendations and market views”, are politically motivated.
As an amateur trader, I feel this question is just merely serve as political agenda which not much to shout about it.
In Malaysia share market, EPF together with KWAP and Permodalan Nasional Berhad (PNB) collectively can be consider market maker, we can't blame anything to them as with their fund size you actually have little thing to buy in our small market with limited selection of counter.
This 3 giant funds have the ability to just privatize any counter in Malaysia market if they wish to, so, I will say that the ball is in EPF and KWAP hand on this FGV share price, it had been just a very short period since FGV listing, just look at longer term, you will see actually EPF and KWAP is doing right on their action or not.