OPPORTUNITY IN CRISIS FOR EPF ?

When I went through some article I found something interesting article about EPF. The Employees Provident Fund (EPF) is a national social security organization operating through a provident fund scheme in Malaysia. Their principal members are the private and non-pensionable public sector employees. This article below was taken from The Edge Daily online website.

The word crisis connotes danger and opportunity in mandarin. A market swarmed by sellers has given the Employees Provident Fund (EPF) the opportunity to be aggressively buying into stocks that appear to have been oversold and are fundamentally strong. The statutory fund had been raising its stake in a number of blue chips, including plantation stocks, from Oct 28 to Nov 10.

Notably, it emerged as a substantial shareholder in Kulim (M) Bhd after buying a total of 15.78 million shares between Nov 6 and 11 in the open market, giving it a 5.12% direct stake in the plantation company. The fund raised its shareholding in Tenaga Nasional Bhd to 635.14 million shares after buying a total of 14.56 million shares between Oct 28 and Nov 4, raising its stake to 14.65%.

Sime Darby Bhd, whose shares had been seeing a selling spree lately following the fall in crude palm oil price, saw EPF acquiring 10.31 million shares and lifting its stake to 935.04 million shares or 15.56%.

EPF took up a total of 9.58 million shares in IOI Corporation Bhd between Nov 3 and 10 via portfolio managers. It now has a total of 758.32 million shares or 12.86% stake in the plantation firm.

Among other counters, EPF was also a net buyer in AirAsia Bhd, Gamuda Bhd, TM International Bhd (TMI), Public Bank Bhd, YTL Corporation Bhd and YTL Power International Bhd.

From my point of views, no doubt that EPF has started to accumulate some of these stocks at a cheaper price still they are investing it for a long term run. That will be a good opportunity for EPF to make a huge return once the KL Composite Index has make a comeback. This only will happen once the share market has started to bring more confident and people are start buying it without any fear, then only the share prices will raise.

We as a player, punter or maybe an investor have a limited fund to turn around. If the share prices go up then it will be great for us but what if the share prices can't even go up and beginning to fall and fall until a stage that we have already out of fund to go in and invest some more ?

We are not like EPF where by they can continue to accumulate these shares if the share prices go down further. They can average up their share prices but we can't because most of us have limited fund only. Do you think that the KL Composite Index will touch 700 points ?????? Make your own judgement .............