Another wave of selling pressure hit the FBM KLCI on Friday as investors mulled over the Budget 2023 and bearish sentiment on the regional markets. We believe all eyes will turn to the upcoming GE15 following the dissolution of parliament announced yesterday. The broad market may trade lower given the uncertainties ahead of the GE15, while foreign investors may extend its selling activities since last week.

The all-inclusive RM372.3bn budget is likely to be positive for Malaysia with the approach of providing necessary assistance to targeted groups, support for business and many other aspects of the nation. Key focus is the development expenditure, which saw a jump of 25.6% to RM95bn. Some positive surprises for the M40 include the reduction of 2% tax and cash aids under the e-Pemula initiatives. We expect some optimism to build up within the construction and building material segments, while other beneficiaries include automotive, consumer, telecommunication, technology, tourism, logistics and healthcare sectors.

The FBM KLCI booked marginal losses as investors took profit in the final hour. Meanwhile, the Wall Street has reversed its course after a few days of rebound. Given the selldown on Wall Street, we expect the market may remain volatile in the global scene, while investors on the local front may trade cautiously ahead of the tabling of Budget 2023.

The FBM KLCI climbed for the third consecutive session, taking positive cue from the global markets as industrial products & services and plantation heavyweights led gains. Given Wall Street ended flat without significant selling pressure which may benefit stocks on the local front.

Mr D.I.Y. Group (M) Bhd (MRDIY) started off since July 2005 and has evolved into the largest home improvement retailer in the region with more than 850 stores across Malaysia and Brunei. MRDIY offers an average of 18,000 variety of products in both the physical and online store.

Together with the aforementioned contract, ECONBHD’s orderbook replenishment year-to-date stands at RM83.5m. This makes up to 33.4% of our expectations of RM250.0m for FY23f. We reckon that future jobs will accelerate moving into subsequent months as property launches over the past 2 years that were held off will take place in this and next year.

The FBM KLCI witnessed further gains as selected telecommunication, consumer, and banking heavyweights lifted the key index; the foreign funds turned net buyer after a 14-session selloff. We believe the local bourse may set for further recovery on the back of stronger oil price, coupled with bargain hunting activities ahead of the tabling of Budget 2023.

Taliworks Corporation Bhd (TALIWRK) is an established infrastructure-related company that involves in 5 key areas, namely (i) water treatment, supply and distribution, (ii) highway toll concession and maintenance, (iii) waste management, (iv) engineering and construction and (v) renewable energy.