Budget 2027 stocks moved in opposite directions on Monday. Banks gained while consumer counters lagged, and the index finished the midday break with a modest gain.
Why Did Banks Lead the KLCI Rebound After Budget 2027?
Banking heavyweights Malayan Banking, Public Bank and CIMB Group carried the index. Consumer stocks told a different story.
99 Speed Mart Retail Holdings (KL:99SMART) and Mr DIY Group (KL:MRDIY) came under selling pressure.
Maybank Investment Bank says the budget offers more opportunities for smaller-cap stocks. Its limited direct impact on large-cap sectors makes a broader market rally less likely.
Maybank IB points to renewable energy, technology, water infrastructure, and mechanical and electrical engineering as areas worth monitoring.
Which Budget 2027 Stocks Could Benefit From Cash Aid?
Hong Leong Investment Bank (HLIB) Research says higher cash assistance, expanded tax reliefs and the minimum wage increase could lift mass-market consumer companies. The key link is the Sumbangan Asas Rahmah (Sara) programme.
- 99 Speed Mart (KL:99SMART)
- Mr DIY (KL:MRDIY)
- Aeon Co (M) (KL:AEON)
- Focus Point Holdings (KL:FOCUSP)
Could Proton and Perodua Lift DRB-Hicom, Sime Darby and MBM Resources?
HLIB expects national carmakers Proton and Perodua to benefit from improved consumer purchasing power. That could support DRB-Hicom (KL:DRBHCOM), Sime Darby (KL:SIME) and MBM Resources (KL:MBMR).
How Much Budget 2027 Support Is Going to Property and Infrastructure?
Extended stamp duty relief for first-time homebuyers could support developers targeting this segment. HLIB names Matrix Concepts Holdings (KL:MATRIX) and SkyWorld Development (KL:SKYWLD).
The anticipated release of the Johor-Singapore Special Economic Zone (JS-SEZ) masterplan by year-end could benefit companies with Johor exposure. HLIB cites UEM Sunrise (KL:UEMS) and Kimlun Corp (KL:KIMLUN).
BIMB Securities highlighted RM83 billion in development expenditure and RM15 billion in power grid investments. It favours technology, utilities, construction, property and consumer companies on this spending.
What Are the Cost Risks From the Wage Increase?
BIMB Securities estimates the wage increase could raise total production costs by 2% to 5% for labour-intensive businesses. Plantation and rubber glove producers are the examples it cites.
Maybank IB remains positive on consumer staples and names Nestle (Malaysia) (KL:NESTLE) as its preferred pick. It also favours selected renewable energy and construction-related companies.
What Is HLIB’s FBM KLCI Target After Budget 2027?
HLIB expects little immediate impact on the benchmark index. The budget focuses on household welfare rather than measures directly supporting listed companies.
HLIB maintained its year-end FBM KLCI target of 1,720 points. That sits 103.68 points above the midday level of 1,616.32.
Key Takeaways
- The FBM KLCI rose 0.49% to 1,616.32 at midday on Oct 12, led by banks.
- Maybank IB says smaller caps may benefit more than large caps from Budget 2027.
- HLIB links cash aid and minimum wage changes to 99 Speed Mart and Mr DIY.
- BIMB Securities estimates 2% to 5% higher production costs for labour-intensive firms.
- HLIB keeps a year-end FBM KLCI target of 1,720 points.
Disclaimer: This article is for information only and is not financial advice. Analyst views are attributed to the named research houses. Always do your own research before making any investment decision. Readers who want to screen these names can also read our AI Stock Analysis for Malaysians guide.
Frequently Asked Questions
Which Bursa stocks did Maybank IB say could benefit from Budget 2027?
Maybank IB said smaller-cap stocks are likely to benefit more than large caps. It named renewable energy, technology, water infrastructure, and mechanical and electrical engineering, and picked Nestle (Malaysia) (KL:NESTLE) as its preferred consumer staples pick.
How did the FBM KLCI perform after the Budget 2027 announcement?
The FBM KLCI rose 7.87 points or 0.49% to 1,616.32 at the midday break on Oct 12. Gains came from Malayan Banking, Public Bank and CIMB Group.
What is HLIB’s FBM KLCI year-end target?
HLIB maintained its year-end FBM KLCI target of 1,720 points. It also expects Budget 2027 to have little immediate impact on the benchmark index.
How much could the minimum wage increase raise production costs?
BIMB Securities estimates total production costs could rise by 2% to 5% for labour-intensive businesses. Plantation and rubber glove producers are the examples it cites.
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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.
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