WTF government pump 5 billion into Valuecap

KUALA LUMPUR, Oct 20 (Bernama) — The government will provide RM5 billion in additional funds to double the size of Valuecap Sdn Bhd to RM10 billion and to invest in undervalued stocks and protect investments in government-owned companies, Deputy Prime Minister Datuk Seri Najib Tun Razak said Monday. [Government Provides RM5 Billion In Additional Funds To Invest In Undervalued Stocks. Bernama. October 20 2008]

And valuecap are joint own by Khazanah and EPF.

Stock are never zero sum game. It is all about supply and demand. If financial sound company drop beyond its asset and tangible value,  buyer will take the opporutnities to hold the stock. So the is not fucking reason for Valuecap to touch the stock market.

So the question is, who are under NJ “RESCUE” or “funding receiver ” of the the RM5 billions funds? Is it something to do with the recent amnor-delegates-buying  thingy?

2 Responses to “WTF government pump 5 billion into Valuecap”

  1. Maverick SM

    Some counters need buyers and the open market is not supporting. Valuecap will be roped in to do the support and boost the value.

  2. Jefus

    Hi, Moo_t,

    When EPF puts in the money, it carries the risk – once relieved of its money, EPF will be stuck with a bunch of companies and their liabilities.

    Actually it is dumb ass stupid. EPF can easily buy in the open market or as traditionally done, assign a handful of fund managers to execute their orders – why does it need to carry this?

    Seems to me like they are using EPF funds to free someone stuck in a bind. No matter how they wrap it, it stinks.

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