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Telekom Malaysia, Nation's Biggest Fund Sell 2010's Best-Performing Stocks

Telekom Malaysia Bhd. and the nation’s biggest pension fund sold stakes in two of the country’s best-performing stocks, taking advantage of rising inflows of foreign funds that helped to boost share prices.

Telekom, the state-controlled fixed telephone operator, raised 414 million ringgit ($131 million) selling 90 million shares of Axiata Group Bhd., two people with knowledge of the transaction said. The Employees Provident Fund, Malaysia’s biggest pension fund, sold a 4.5 percent stake in RHB Capital Bhd. for 746 million ringgit, two people with direct knowledge of the matter said.

“Investors’ risk appetite is there,” said Pankaj Kumar, who oversees $560 million as chief investment officer of Kurnia Insurans Malaysia Bhd. near Kuala Lumpur. The sales are helping to “create the liquidity within these stocks.”

Axiata’s 55 percent surge and RHB Capital’s 50 percent advance this year make the shares the best performers on the FTSE Bursa Malaysia KLCI Index. The Southeast Asian benchmark gauge has risen 18 percent and reached an reached an intraday record of 1,531.99 on Nov. 10 as international investors purchased more of the nation’s stocks than at any time since at least 1995, according to data compiled by EPFR Global.

Photographer: Goh Seng Chong/Bloomberg

A sign for TM Point, a subsidiary of Telekom Malaysia Bhd., is displayed in front of the KL Tower in downtown Kuala Lumpur. Close

A sign for TM Point, a subsidiary of Telekom Malaysia Bhd., is displayed in front of... Read More

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Photographer: Goh Seng Chong/Bloomberg

A sign for TM Point, a subsidiary of Telekom Malaysia Bhd., is displayed in front of the KL Tower in downtown Kuala Lumpur.

The share sales comes after Prime Minister Najib Razak called on state-linked institutions in March to cut their stakes in public companies to boost stock market liquidity and attract foreign investors. Khazanah Nasional Bhd., a government investment agency, this year sold shares in companies including Malaysia Airports Holdings Bhd., CIMB Group Holdings Bhd. and Telekom Malaysia Bhd.

Foreign funds were net buyers of Malaysian stocks for a sixth consecutive month through November, Tan Ting Min, an analyst at Credit Suisse Group AG said in a report today, citing data from the Kuala Lumpur stock exchange.

To contact the reporters on this story: Chan Tien Hin in Kuala Lumpur at thchan@bloomberg.net; Chong Pooi Koon in Kuala Lumpur at pchong17@bloomberg.net

To contact the editor responsible for this story: Darren Boey at dboey@bloomberg.net

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