A bearish market is a boon to long-term investors like the EPF, as it provides an opportunity to pick up good, valued stocks at reduced prices, he said.
Bursa Malaysia is expected to remain volatile in line with global and regional markets as investors continue to take a cautious stance while monitoring developments in the domestic and global economy as well as the financial system, he said.
Like every other fund, the EPF was also affected due to the downturn in the stock markets but was on track until September 30 to basically meet budget expectations, as it had realised a big portion of the target earlier, he added.
“The global financial crisis has led to stock markets across the globe falling dramatically. Bursa Malaysia has also not been spared,” he said in a recent interview.
He said this factor would naturally have an adverse impact on the fund's income and it would be difficult for the 2008 dividend to match that of 2007.
“Furthermore, the recent quarterly announcements by listed companies have reported lower profits which usually translates into lower dividend payouts, or not at all. This will further impact the EPF's investment income for 2008 and 2009,” he added. - Bernama