Those comments were very similar to the ones Tan made in his interview with The Star, which I mentioned in my previous blog posting.
If his influence is indeed so large, I don't know but it might very well be the case.
However, it has to be mentioned that warnings signals regarding the O&G industry have been there for quite some time. I mentioned them in postings, for instance here and here.
Reuters wrote in February "Oil firms seen cutting exploration spending". The share price of several O&G counters has been on a down trend for some while.
The larger macro picture is most likely that the price of oil has come down due to a slow down of China's economy and alternative sources for O&G through fracking.
Tan Teng Boo has been bearish for years and due to that, the returns of his funds have been significantly under-performing other funds in recent years. He can repeatly call bear and for sure he will hit it one day.
ReplyDeleteTTB's comments was not the reason for local market correction. He has been bearish for a number of years already.
ReplyDeleteThe reasons were more to volatile oversea markets and bearish commodities prices including oil. TTB's comments was used as an excuse to sell down.