QUOTE(Jinglexo @ Oct 2 2017, 10:55 PM)
How it rock bursa? Bursa is made up by big companies like public bank , petronas, genting .....etc .
Do you know that the total market cap of Bursa is RM1.6trillion or so. And Just ASB alone holds investors money of RM144billion. So easily the various FP funds will account for 10-15% of the Bursa market cap. QUOTE(savvyaunty @ Oct 2 2017, 11:43 PM)
Doubt PNB will go bust without affecting the whole KLSE. Their shareholding in KLSE is so big that it might bring down tonnes of companies with it
Actually as an GLIC, the effect should be coming from investee affecting their returns and asset value instead of PNB goes bust affecting its investees. The only "going bust" coming from PNB would probably be a bank run where all depositors demand for their money and they couldn't liquidate their investments in bursa without causing an immediate crash due to the large holdings in the large cap counters.QUOTE(Ramjade @ Oct 3 2017, 12:27 AM)
Eg. If PNB can say take up 25% of maybank with just one buy. Now, they are not the best people to know how to run a bank. So their decision basically will control the comoany. Not good man. Not to mention that, when a fund gets too big, is harder for them to generate the same return. This is because they cannot deploy the money they received into investment and they will be sitting on cash. And cash don't earn anything basically.
Later will go ask ASNB and see.
If a unit trust with AUM of RM4-5billion in the local equity markets could not make much returns, Eg: CIMB dali funds, public ittikal, public regular savings etc. What do you think RM144billion returns would be?Later will go ask ASNB and see.
This post has been edited by dasecret: Oct 3 2017, 10:08 AM
Oct 3 2017, 09:44 AM

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