STRATEGY: Mini Budget- Strangely Unfulfilling (OSK)

While the Mini-Budget’s total allocation exceeded expectations at RM60bn, only some RM18bn comprises direct fiscal stimulus, and out of that RM5bn is for 2010. As the much hoped-for tax cuts failed to materialise, the direct relief for the man on the street seems limited. With a tax relief on housing loan interest, the property sector appears to be the biggest gainer followed by the construction sector as many small scale projects are budgeted for. Although there had been indications of a liberalisation of services, the initiatives are too vague to quantify at this point of time. Look to accumulate as the market retraces back towards the 830 pt-level once it gets over a short term mini-budget rally.