02-June-08 : Is it MAYBANK really vary bad?

Maybank is testing 2004 support on relatively high volume. News is extreemly bad as perceived by the investment analysts and most fund managers. Perceived bad news are the recent aquisitions in Indonesia and Pakistan which some analists say are unstable countries etc. Some are even forecasting that Maybank will cut their dividend

Even Tan Teng Boo of I Capital downgraded Maybank from Buy to Hold.

On the other side of the coin if Maybank was so financially in trouble why did ASB, EPF and PNB buy 38,363,000 shares (0.786%) from 30 April to 16 May ? Why have other prominent funds and inside money been buying Maybank in the face of extreme bad news ?

Most of the big funds at end of last year 2007 have Maybank share on hand and what I know is they still holding the share just that they have sold it and buy it back from early of March 2008. What surprise me is the total share on hand for all this big funds is up!Maybank didn't do any share buy back, where are all the share go when sell by retail traders? All the big funds is buying.

Smart money buys under the cover of bad news. They do not want to push up the price against their own buying. That is bad for business. I would not be surprised if much of the bad news is manufactured by insiders to keep the price down and at the same time buy with low price from retail traders like us.

I personally Q buy at RM 7.00 to take some profit along with the big funds.