EPF, KWAP, TH on FGV: The big 3's position

I wanted to have a feel on the largest national funds with regards to their holdings on a company which can be thought to be controversially supported - FGV.

Let me show the table which I have prepared. As you can see the three funds:

• EPF started with 5.06% holding, now after 1 month owns 5.65% of FGV;
• KWAP started with 5.30%, by 26 Jul it increased its holdings to 6.33%;
• Tabung Haji started with 7.55%, 1 month later reduced slightly to 7.49%.
• As for share price, FGV opened at RM5.30 on 28 June, latest was RM5.12 (for the period in review).

Now, you see that as the share price of FGV dropped, the funds continue to increase their holdings especially from mid July. It is not wrong to buy as shares continue to drop, but this I think is not the case here. Currently, the three funds hold in excess of 19.3% of FGV from the initial period of below 17.9%. As EPF has proven to hold more than 10% of many Bursa Composite companies, I will not be surprised that it will continue to increase its holdings.

Now the question is whether these purchases allow some to sell especially the huge list of MITI's holders? Currently, palm oil stocks are on the slide due to potential weakening of crude palm prices but this is not the case here. Many of the shareholders of FGV at the moment are just not the believers type (and they were just doing trading) and I have the suspicious mind that these funds are doing their best to not let it slide much further.

Do you know why I am not supportive of these funds being heavily involved in Malaysian stocks?