We are buying as market over sold

As KLCI in a short term correction mode.  There are stocks that beaten down a lot possibly due to fear of retail investor.  Many 2nd liners or grow stocks has started to show value.  

We bought MNRB at RM 4.250, Lonbisc at RM 0.715, Success at RM 1.700, TA at RM 0.870.  We will gradually nibbling for our top picks as long as value emerge no matter what is the sentiment of KLCI.

We have shorted KLCI at 1835 and covered back at 1822.5.  We longed back at 1822.5 and possibly cover back before end of the day.

KLCI to be range bound ahead of budget

There may be speculation but also some short term funds selling.  As many can expect a tightening deficit budget is going to be the objective. 

Corporate tax and personal tax may be lowered ahead of GST.  Many industries will wait for the detail or exemption or inclusion.

To our perspective.  Help those areas in need but definite not handling out cash.  As this will increase wastage as the criteria to receive the money is too general.   

In general, fiscal policy is a tool to influence the economy with objective.  I bet the most critical objectives now are to reduce budget deficit; channel resources to grow high margin industries and realign growth via human factor development like education and social welfare.

The market will very much depending on the budget to build it’s next 2 quarters trend before GST starting in April 2015.  We continuous recommending good stock pick and away from speculative play.

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