The portfolio performance in this week was affected by foreign fund sell out due to Egypt political instability and Chinese New Year Holidays.
Next week, MEGB is likely to drop to a new low, due to:
1) BursaMalaysia closing for 3 days next week, due to Federal Territory Day on Feb 1, and Chinese New Year Holidays from 3-4 Feb, most investors may had be already on leave for holidays, hence transaction volume shall be lower;
2) Following the overnight market on Wall Street in the biggest 1 days loss of 166 pts last Friday 28 Jan 2010 in nearly six month, as anti government rioting in Egypt prompted investors to flee to less risky assets to ride out the turmoil.
In view of the above, i believe Fidelity and SmallCap will reduce its equity weight, as such, they will have to sell MEGB. Having said that, i shall not sell it as one of my stock trading principles is "Buy low Sell high", and based on its latest financial statement, the fundamental of MEGB is still very strong. Despite the disposal of its foreign equity shareholders, i still believe it is healthy, unless otherwise there are major movement of its financial position between the period from when its financial statement announced and now.
