VIBRANT MARKET

BURSA Malaysia is expected to continue its rally next week on “feel good” factors in the 2018 Budget, say market analysts. Infrastructure, consumers and information technology stocks are likely to attract the most attention.

BURSA Malaysia is expected to continue its rally next week on “feel good” factors from the 2018 Budget, according to market analysts.

These “feel good” factors will be most prominent in the infrastructure, consumer and information technology counters.

Analysts said the local bourse rebounded to end higher on persistent buying of heavyweight stocks yesterday, following positive sentiment brought about by the budget announcement.

Malaysian Association of Technical Analysts director Nazarry Rosli said even before the announcement, the benchmark FTSE Bursa Malaysia KLCI had been rallying. It ended higher at 1,746.13 from Thursday’s close of 1,736.80.

After opening 4.54 points better at 1,741.34 in the morning, the index moved between 1,739.89 and 1,751.50 throughout the day.

“It goes without saying that this is one of the best budgets designed for the people,” said Nazarry. “It is quite apparent that there has been less concentration on the corporate sector and with the lowering of (personal) income tax by two per cent, there will be a lot of disposable income and that would help with the consumer counters.”

Bursa Malaysia Bhd chief executive officer Datuk Seri Tajuddin Atan said the stamp duty exemption for exchange-traded funds and structured warrants would boost trading, liquidity and vibrancy in the capital market.

“By announcing the exemptions, we are pleased that the government recognises the increasing popularity of these two growing investment products,” said Tajuddin in a statement.

Nazarry said contractors of ongoing mega infrastructure projects such as the East Coast Rail Link, the Light Rail Transit 3, the Kuala Lumpur-Singapore highspeed rail and the West Coast Highway would benefit the most.

Nazarry said the proposed abolition of toll at Batu Tiga, Shah Alam, Sungai Rasau, Selangor, Bukit Kayu Hitam and Eastern Dispersal Link (EDL) in Johor from January next year would positively impact Malaysian Resources Corp Bhd (MRCB) in particular.

“MRCB, as the concessionaire and owner of the EDL, may likely be compensated by the government in its move to scrap toll,” he said, adding that MRCB was a counter to look out for.

MRCB is in the midst of selling the EDL highway. Previous reports stated it was in discussions with at least two suitors.