KUALA LUMPUR, Feb 26 — The FTSE Bursa Malaysia KLCI (FBM KLCI) futures contract is likely to be supported above 1,450 next week, in line with the tabling of Budget 2023 on Friday, barring any unforeseen negative factors from the Wall Street, Malacca Securities said.

In a research note, the brokerage firm said with the speculations on “sin tax” and capital gains tax being removed from the equation, the upside should be expected next week.

“We also foresee fairly positive to the stock market. For capital gain tax, our Prime Minister Datuk Seri Anwar Ibrahim mentioned that it will be discussed with certain parties in 2024 and it will be implemented for the disposal of unlisted shares.

“Hence, the market may have priced in earlier on and could rebound next week,” it said.

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Meanwhile, Malacca Securities said the higher development expenditure in the Budget 2023 of RM97 billion should benefit the construction and building material segments while other beneficiaries included the renewable energy, construction, building material, automotive, telecommunication, tourism, plantation and healthcare sectors.

“‘Sin’ sectors may turn higher after the sell down these few weeks while no capital gain tax was stated will provide upside potential at least for 2023,” it said.

It added that most of the initiatives are tackling the elevated living costs and rebuilding the economy. — Bernama

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