From Monday to wednesday of this week, overall market did not perform very well and the KLCI index had consecutively dropped for 6 days. However, MEGB was quite stagnant during that period, probably these two equity funds shareholders did not dispose their stake while market was under correction stage.
But i dont think they will stop dispose their stake, i believe they are positioning to dispose all of their MEGB. When overall market is resume back from correction stage like today, they will continue to dispose their stake until zero shareholding. Hence, MEGB is hardly to rebound or rise a lot if each of them remains holding more than 3 million shares. It will be good if there is a new significant shareholder to replace them.
Friday, January 28, 2011
Sunday, January 23, 2011
Portfolio Performance @ 21 Jan 2011
This week portfolio performance.
During last week, MEGB was continued being sold by Fidelity, its stake has been reducing from xxx somewhen xx May 2010 to xxx now, while SmallCap is likely to start disposing its stake. That probably is because of some foreign funds (which definitely including Fidelity and SmallCap) taking money out from equity market. Obviously, this is not isolated case which only applicable to MEGB, many other stocks was also affected, esp plantation counters and finance counters.
KLCI drop by 23 points or 1.5% to 1547 closed at 21 Jan 2011, that was mainly due to some foreign funds taking money out from equities. What is the rationale behind for taking money out from equities by foreign funds? Probably, the reason is the possible implementation of tighter monetary policy in China, that may have impact on global economic. However, this kind of policy is good to cool down a bit of overheat economic in China.
MFCB seems that a support level is there around RM1.70. I should be able to dispose it with small loss or gain when another replacement comes.
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