The Employees' Provident Fund (EPF) has witnessed its investment value in 10 public-listed companies (PLCs) drop by 12 per cent or RM6.09 billion, a month after the election that saw the fall of the incumbent Barisan Nasional (BN) government.
Financial daily The Edge reported that in the aftermath of a stock market meltdown post GE14, the value of EPF's investment in the 10 companies has dropped sharply from RM51.21 billion to RM45.12 billion within just a month.
The top 10 worst performing stocks in EPF's portfolio in the past one month are: Cahya Mata Sarawak Bhd (CMS), Malaysian Resources Corp Bhd (MRCB), IJM Corp Bhd, Gamuda Bhd, Telekom Malaysia Bhd (TM), Axiata Group Bhd, Tenaga Nasional Bhd (TNB), CIMB Group Holdings Bhd, Maybank Bhd and Genting Plantations.
The construction sector is severely affected due to the new Pakatan Harapan (PH) government's review on mega infrastructure projects, namely the East Coast Rail Line (ECRL), the Kuala Lumpur-Singapore high-speed rail (HSR) project and the third mass rapid transit line (MRT3).
CMS was the top loser in terms of the quantum of share price drop. The diversified group's share price has plunged 37 per cent, wiping off RM1.7 billion from its market capitalisation.
As a result, EPF, which owns a 10.69 per cent stake in the company, saw its value of investment drop by RM180 million.
CMS' shares have also taken a beating due to negative market sentiment towards stocks that are seen as politically linked to the previous BN government.
CMS' biggest exposure is the Pan Borneo Highway and federal road maintenance jobs covering about 200km. There have been suggestions that state road concessions in Sarawak be awarded via open tender.
CMS, which has been listed since 1989, is perceived to be controlled by Sarawak Yang di-Pertua Negeri Tun Abdul Taib Mahmud's family, whose members have been on the board for decades.
Both MRCB and IJM saw their share prices drop by 32 per cent, wiping off RM1.4 billion and RM3.1 billion from their market cap respectively.
As for EPF's 35.32 per cent stake in MRCB, the investment value shrank by RM490 million.
Meanwhile, its 14.5 per cent in IJM witnessed its investment value drop by RM450 million.
Gamuda's shares have declined 28 per cent, wiping off RM3.7 billion from its market cap.
Hence, EPF's 10.11 per cent stake value also dropped by RM370 million.
In total, EPF has lost RM3.86 billion in investment value in the four government-linked companies within a month.
As the share prices of Maybank, Axiata, CIMB and TM have declined 7 per cent ,12 per cent, 8 per cent, and 21 per cent each
EPF's losses in value on paper from these companies are RM1.06 billion, RM990 million, RM730 million, and RM690 million respectively.
However it was the decline in the share price of TNB that hurt EPF's investment value the most. The utility giant saw RM8.5 billion wiped out from its market cap.
As a result, EPF, which has a 12.67 per cent stake in the company, saw its investment value shrink 9 per cent or RM1.08 billion.