EPF-Stabiliser or Destabiliser?

This is one interesting question as EPF is a juggernaut of a giant which can virtually move mountains as far as BSKL is concerned.

 I have been observing its actions lately. True, it made smart moves based on the dynamics of the market. Lately it has made small cute purchases as well as sold in large chunks.

Case in point-Ever since YTL Corp splitted its share into 5, EPF was in the market selling an enormous amount of it. To ensure that the price can be 'protected' so as not to lose its fair value, YTL Corp has also been in the market mopping up the shares thrown out by EPF. The share price has been gravitating because of EPF and bargain hunters had a field day almost all of May until the first week of June. It is only today that the Treasury buy-in by YTLCorp could stave off the mincing effect of the diabolical EPF.

 Interestingly, it has switched tacks. Now, it is starting to purchase small buy-ins into KLCCP  and KLK. Both are tightly held and I guess with little 'float'.

As I would expect their selling of  YTLCorp to taper off, providing some relief and respite from those buyers at YTLCorp, we could expect some upward action particularly in KLK and KLCCP.

EPF is no stabiliser. It is a destabiliser.

It is fortunate that we allow Treasury buy-ins on BSKL; otherwise EPF could really turn into some sort of 'rogue trader'!

So, watch these counters as EPF displays its devilish 'puppet master' stunts!