Expect a more subdued 2H17 for the FBMKLCI amid macro challenges such as a significant expiry of Malaysian Government Securities, lower crude oil prices (which will modestly lower the government's revenue expectations) and rising US interest rates. Meanwhile, expectations for a 2017 general election have somewhat waned. While we advocate adopting a more defensive strategy, we still expect good returns for selected investment themes - mega infrastructure, China’s FDI and E&E plays.

Source: UOB Kay Hian Research - 14 Jul 2017