Bursa Malaysia to trade cautiously awaiting Budget 2017

Oct 8, 2016

 

Market observers predict the Bursa trading will be done in a cautious manner prior to the Budget 2017 to be tabled on Oct 21.
Market observers predict the Bursa trading will be done in a cautious manner prior to the Budget 2017 to be tabled on Oct 21.

Bursa Malaysia is likely to see cautious trading next week ahead of the 2017 Budget announcement on Oct 21, dealers said.

Affin Hwang Investment Bank Vice-President/Head of Retail Research,  Nazri Khan Adam Khan, said stocks in the technology, telecommunications and construction sectors would likely benefit from the 2017 Budget.

“Investors are likely to take a ‘wait and see’ approach, but in my view, we expect the government to focus on the digital economy, in order to boost the economic contribution from the Internet and e-commerce marketplace. 

“This includes stocks like MY E.G. Services Bhd, Inari Amertron Bhd and Telekom Malaysia Bhd (TM),” he told Bernama.

On the external front, Inter-Pacific Research Sdn Bhd Head of Research Pong Teng Siew said a US interest rate hike is unlikely to be announced by the US  Federal Reserve in its next policy meeting in December. 

“In my view, the weaker US jobs data growth won’t favour an interest rate increase by the US Federal Reserve,” said Pong. 

On Friday, it was reported that the US non-farm payrolls in September increased to 156,000, down from a revised gain of 167,000 jobs in August. 

Source: Bernama

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