EPF dominates 50% of the daily trading on Bursa! EPF total funds amount is RM370 billion. Of which, 1/4 is invested in Bursa. That amounts to RM92.5 billion. On average, daily trading is at least 1 billion in Bursa! 2009 YTD Bursa transaction was RM605.6 billion. Half of the transaction came from EPF. EPF is the biggest fish in Bursa. How about the private fund houses?
On 7th March when other Asian markets were on the uptrend, EPF dumped RM83 million shares that dragged Bursa down on that day. That represented half of the volume traded on that day. In fact for the past two days, EPF sold off RM441 million of shares.
EPF has so much money to invest. No wonder Bursa does not align with the up and down trends of the other Asian markets.
This make me wonder whether it is safe to invest in Bursa. How about local unit trust? Looking at the bright side, the market capitalisation of Bursa is comparatively small. If EPF continues its Bursa investment, the market should be considered safe.
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