As known issue that surrounding 2014 budget is to ensure a better balance and lower deficit expectation. Budget 2014 will have no choice in overall to be prudent. We may see some increases in taxes at some angles and also some spending to other angles. Most important it cannot be expanding budget.
If it is widely expected as a prudent budget. We will see some pressures on GDP growth next year. If we see a expanding budget that may increase debt will prompt some selling pressures. Thus in short term there is no choice but KLCI will trade cautiously bias downward.
Of course this is the macro view and it will be always some good companies that will outperform the market and vice versa some underperform. It will be a surprise if market react positively. But our continuous practice of all weather conditioned portfolio is always hoping room to improve via turbulence market.