KUALA LUMPUR — Bursa Malaysia is likely to see cautious trading next week ahead of the 2017 Budget announcement on October 21, dealers said.

Affin Hwang Investment Bank Vice-President/Head of Retail Research, Datuk Dr Nazri Khan Adam Khan, said stocks in the technology, telecommunications and construction sectors would likely benefit from the 2017 Budget.

“Investors are likely to take a ‘wait and see’ approach, but in my view, we expect the government to focus on the digital economy, in order to boost the economic contribution from the Internet and e-commerce marketplace.

“This includes stocks like MY E.G. Services Bhd, Inari Amertron Bhd and Telekom Malaysia Bhd (TM),” he told Bernama.

AllianceDBS Research in its note said that the 2017 Budget would entail business- and consumer-friendly initiatives although the Federal government is constrained in its fiscal spending.

“Whilst we see no single large component in operating expenditure targeted for cuts, we believe that the 2017 Budget’s cost-prudent measures could be similar to the 2016 Budget recalibration approach, which was by delaying non-urgent projects and trimming excesses,” he said.

On the external front, Inter-Pacific Research Sdn Bhd Head of Research Pong Teng Siew said a US interest rate hike is unlikely to be announced by the US Federal Reserve in its next policy meeting in December.

“In my view, the weaker US jobs data growth won’t favour an interest rate increase by the US Federal Reserve,” said Pong.

On Friday, it was reported that the US non-farm payrolls in September increased to 156,000, down from a revised gain of 167,000 jobs in August. Employment growth slowed for the third straight month in September.

For the holiday-shortened week just ended, the benchmark FTSE Bursa Malaysia KLCI rose 12.83 points to 1,665.38 compared with 1,652.55 last Friday. On a week-to-week basis, the FBM Emas Index perked 74.57 points to

11,762.15, the FBMT 100 Index increased 78.5 points to 111,465.59 and the FBM Emas Shariah Index was 71.55 points higher at 12,419.73.

On a sectoral basis, the Finance Index surged 112.87 points to 14,271.16, the Industrial Index rose 25.73 points to 3,135.75 but the Plantation Index was 29.60 points lower at 7,890.50.

Weekly turnover eased to 6.27 billion units worth RM7.39 billion from 8.3 billion units worth RM9.4 billion last Friday.

Main market volume dipped to 4.07 billion units worth RM7.05 billion against 5.54 billion units worth RM8.91 billion last week.

Warrant turnover fell to 939.82 million units valued at RM175.12 million from 1.44 billion units valued at RM275.02 million.

The ACE market fell to 1.25 billion shares worth RM162.55 million from 1.29 billion shares worth RM171.26 million.

The market was closed on Monday for Awal Muharram, which fell on Sunday. — Bernama