Felda has been in the news of late being an entity which could make or break the ruling government in the coming Malaysian elections. In todays papers, it was reported that the new Felda Chairman Tan Sri Shahrir Samad promised a major shakeup in Felda in a bid to improve the governance and financial performance of the government entity. Among them is the change of the entire board of Directors, the disposal of hotels in London, selling 35 millions shares of Maybank which it owns and acquisition of Eagle High Plantations.
Though Felda has disposed 35 millions worth of shares, it is still the 5th largest shareholder in Maybank. The disposal of Maybank shares saw Maybank shares dropping from RM8.35 to RM8.05.
The last 2 days saw Maybank shares recovering from the low of RM8.05 which buying reportedly coming from local funds. Now this is the part which makes me wonder. Felda had a similar scenario in which EPF announced on December 22nd, 2016 that it has sold all its Felda shares. However there were no reports in the local paper on who its buyer was except Felda itself which acquired a significant 29 million shares in December alone through subsidiary Felda Asset Holdings Company.
In just 2 trading weeks, recovered from a low of RM1.47 to RM1.82. I suspect there is more buyers than Felda itself for a move like this. The question is who the buyer was? Anyhow price action will only further strengthen the notion that the support price for FGV shares in this moment RM1.44. Running up to the elections which may happen this year, FGV would be a stock to watch and trade. I believe that prices can rise to at least RM1.97 leading to the elections. So stay tuned.