After fund manager short out and crash KLSE, where will the money goes?
Malaysia media analyst are slow and sluggish. They just tell you the stock market plunge. Then later, they say, oh, it is the BN linked company.
So what next? How many percent stock are this “foreign fund manager” holding? How much does local fund manager hold such company shares? And why KLCI hit badly?
After the selling, the money must go somewhere. And it is impossible to TT(Telegraph transfer) a few hundreds million to other currency overnight. Because Bank Negara Malaysia does has restriction on foreign exchange. And the trading still abide to the T+3 days ruling, so no fund manager are able to short out any money immediately.
So the problem are not today nor tomorrow trading, but on Thursday 13-March-2008 , when the trade due. If people stupidly follow the selling trends, they might be fools if the fund manager buy back some of the oversell stock, e.g. Public Bank and May Bank. Because the money must goes somewhere.
However, I don’t suggest any buy action. Because those funds manager might play wait and see game after T+3 day.