The ambitious Budget 2018 is the most robust in years (+6.5% in operating expenditure) and prudently targets a lower deficit (2.8%). Although largely market neutral as that in previous years, a few companies appear to be prominent beneficiaries. We introduce an indicative end-18 FBMKLCI target of 1,830. Key investment themes are exporters and mega infrastructure. Top Budget winners include Excel Force (NR), Gamuda (BUY) and MRCB (HOLD).

Source: UOB Kay Hian Research - 30 Oct 2017