FBMKLCI
1817.57 -1.36pts (-0.07%)
Volume 1.759b Value 1.418b
1) KLCI snapped its 7 days winning streak as investors
took profits ahead of Budget tabling which begin at 4pm. Regional markets
continue to trade cautiously as China money market rate continue to rise
stoking concern on the tigher liquidity. Index fell to a low of 1812.47
(-6.46pts) before late buying ensured index close just off overnight levels.
MYEG+2.7%, CENSOF+8.5%, TIME+3.7% gained as they are likely beneficiary of
Govt's proposal to implement GST. Market breadth was negative with losers
edging gainers by 385 : 380. Futures closed 1814 (4pts discount)
2) Heavyweights: TENAGA-1.4% RM9.37, SKPETRO-1.87%
RM4.19, GENM-1.16% RM4.25, PBBANK-0.22% RM18.50, GENTING+1.5% RM10.54,
PETGAS+1.3% RM23.80, IOICORP+0.56% RM5.44, UMW+1.12% RM12.68
3) DBT : RA 100mil @ RM0.05 (11.4% PUC), EDUSPEC 10mil @ RM0.145 (2% PUC @ 12%
discount), INARI 7.217mil @ RM1.27 (1.58% PUC), MASTEEL 5mil @ RM1.07 (2.27%
PUC @ 5.3% discount)
4) Situational:-
TEBRAU +0.69% RM1.44 - stock saw a pick up on volume
after news reported that Tebrau could be taken private by major shareholder Tan
Sri Lim Kang Hoo While other sources said Tebrau is close to inking a deal to
dispose some of its prized asset.
5) BUDGET : The theme for the Budget 2014 proposals 'Strengthening Economic Resilience,
Accelerating Transformation & Fulfilling Promises' with 5 main thrusts :
Thrust 1: Invigorating Economic Activity; Thrust 2:
Strengthening Fiscal Management; Thrust 3: Inculcating Excellence in Human
Capital; Thrust 4: Intensifying Urban and Rural Development; Thrust 5: Ensuring
Well-Being of the Rakyat
Nett FDI was higher at 18.2B in 1st half of 2013,
compared with 15.9B during the same period in 2012.
For 2013, domestic economy is expected to expand bt 4.5%
& 5%. Growth supported by private investment, increasing 16.2% to estimated
RM165bil. Private & public consumption are expected to grow 7.4% and 7.3%
respectively mainly supported by strong domestic economic activity.
Export of goods are expected to grow at 2.5%. In 2014,
construction sector is expected to grow at 9.6% and followed by sevices sector
at 5.7% Unemployment rate is estimated at only 3.1% whereas inflation rate
remains lowest at 2% to 3%. The per capita income for 2014 is expected to reach
RM34,126. That is 37% higher than RM24,879 in 2009.
Budget 2014 will allocate a total of RM264.2 billion to
implement programmes & projects for the rakyat's well-being &
development. In 2014, the Federal Government revenue collection is estimated at
RM224.1 billion, an increase of RM4 billion from 2013. The Federal Government
fiscal deficit will further decline from 4% of GDP in 2013 to 3.5% in 2014.
Private investment is expected to reach RM189 billion (17.9% GDP) in oil &
gas, textile, transportation & property. Meanwhile, public investment is
expected to reach RM106 billion.
Economy:
*The Malaysian economy is expected to expand at a
stronger pace of between 5% and 5.5% in 2014.
* On the supply side, the services and manufacturing
sectors are expected to expand at a stronger pace on the back of resilient
domestic consumption, higher tourist arrivals from Visit Malaysia Year 2014,
and a firmer recovery in external demand. The services sector - which accounts
for 55% of the country's GDP - is expected to show a dip to 5.5% in 2013 from
6.4% in 2012 before picking up to expand 5.7% in 2014.The manufacturing sector
- which accounts for 24% of GDP - it is expected to slow down to 3.2% in 2013
from 4.8% in 2012 before recovering to grow at a faster pace of 3.8% in 2014.
The construction sector is also likely to continue performing strongly, driven
by civil engineering projects and the residential segments. Mining is expected
to show stronger growth from 1.4% in 2012 to 2.2% in 2013 and improving to 3.1%
in 2014. Agriculture is expected to also improve from 1% in 2012 to 2.7% in
2013 and expand further by 3.0% in 2014.
* Inflation is expected to remain manageable with the CPI
averaging 2%-3%. Labour market conditions, too, are projected to be stable with
unemployment at just 3.1%. On the fiscal side, the total Federal Government
expenditure will remain stable at RM262.2bil. With revenue performance
outpacing growth in expenditure, the Federal Government's fiscal deficit and
debt are expected to decline to 3.5% and 54.7% of the GDP respectively. On the
external front, the current account balance is expected to remain in surplus at
RM23.9bil, despite increasing investment-related imports. Gross National Income
(GNI) is expected to increase 6.2% to RM34,126 in 2014 from RM32,144 in 2013.
Per capita income is estimated to grow to US$17,173 from US$16,743.
Others:
*Plans 6% GST effective April 1,2015, and to abolish
sales & service tax. GST won't apply to basic food items, transport and
medical charges.
* Malaysia to cut corporate tax to 24% from 25% when GST
starts. To cut income tax 1-3% post GST.
* To abolish sugar subsidy of 34s from tomorrow.
6) Market: with the major budget policies broadly in line
with expectations, the market is likely to be steady and test the KLCI all-time
high of 1826 before consolidating its
gains.
