Power of PNB and EPF grows

THE presence of Permodalan Nasional Bhd (PNB) and the Employees Provident Fund (EPF) in Corporate Malaysia has become more conspicuous after the departure of a lot of foreign funds.

In a sense, their buying has helped to support prices as foreign funds sold down their shares on Bursa Malaysia.

PNB has, for instance, raised its stake in SP Setia Bhd to 31% from just 1% a year ago, according to a report by HwangDBS Vickers Research last week. It is understood this refers to the combined stakes held by various funds under PNB.

Directly, PNB owns 5.5% of SP Setia, with Skim Amanah Saham Bumiputra (ASB) having 19.75% and other PNB-managed funds holding 7%. That’s a further increase to a total of 32% since the HwangDBS report.

That makes PNB and related funds the single largest shareholder. Even so, SP Setia is expected to continue to be professionally managed by its CEO Tan Sri Liew Kee Sin who owns 12% of the company.

Given his track record, he would have the support of PNB and other institutional shareholders such as US-based Capital Group which owns an estimated 13% of SP Setia.

PNB seems to be partial towards landed assets. In previous years, it had taken over and privatised Island & Peninsular Bhd, Pelangi Bhd and Petaling Garden Bhd.

More recently, ASB emerged as a substantial shareholder in Mah Sing Group Bhd in which it now holds a stake of 13.2%.

EPF has also been active in buying shares. It has, for instance, become IJM Corp Bhd’s biggest shareholder, with a stake of 20.1% at a time when other shareholders like Emerging Markets Growth Fund Inc sold off most of its shares.