Analysts temper hopes of market-friendly Malaysian budget

Kuala Lumpur

INVESTORS who are hoping that Budget 2017 will rally the stock market are likely to be disappointed as Putrajaya faces too many fiscal constraints and will have to be circumspect in its spending, analysts say.

Expectations are rising for a market-friendly Budget 2017 ahead of a snap election that could take place as early as the first quarter, according to speculation, but AllianceDBS Research suggests investors temper their expectations.

"While politically-linked stocks may have run, the government's fiscal constraints will dampen prospects for any fiscal measures to boost economic growth in a material manner to warra…