After our own studies on the budget 2013, we think it is a pretty much election budget. We would say it is not a bad budget but neither it is a good one. Most measures for businesses are pro longed release pill except MRT project.
For Oil & Gas and Financial sectors incentives. We believe we can get a bit of return but the whole world not Malaysia alone is doing it. I do believe Oil & Gas we do have some strength.
Overall, i would suggest a KLCI range bound bias to lower to Friday close in the coming week. Again, we continue our defensive strategy in investing asset oriented businesses or agriculture or Oil & Gas as mentioned before.
We tip KLCI at 1625-1650 range bound but bias to lower challenging 1600.