Daily Market Report (14 Oct 2019)
- Budget 2020 was a non-event focusing predominantly on the welfare of the B40 category. Whilst the middle class has been largely ignored, indirect benefits would come from the reduction of toll rates.
- It is apparent that the Construction and Tech sectors would be the main beneficiaries with the roll-out of mega infra related projects coupled with a plethora of incentives for start-ups.
- The Property sector should also benefit from the reduction of the price threshold for foreign buyers however we are dismay that the developers and bankers are not doing their part in addressing the oversupply.
- We are Neutral on the Budget as the impact of the local bourse is expected to be rather muted. Though we may see some buying returning to the local bourse, any upside should be capped as sentiments are seen to remain status quo. Immediate resistance is seen at the 1,560 level.
