All eyes and ears on revised Budget update

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KUALA LUMPUR (Jan 20): Local investors’ focus would be on Prime Minister Datuk Seri Najib Razak’s announcement of the country’s economic situation and the revised Budget at 10am today.

The outcome of the announcement is likely key to the market performance today, as well as other external developments espcially in Europe where it is largely expected that the European Central Bank would unveil a stimulus package.

Chinese shares chalked up their biggest one-day slide in nearly seven years on Monday after regulators there took steps to rein in speculative lending, while investors everywhere braced for what is shaping up to be a critical week in the euro zone,according to Reuters.

Expectations are high that the European Central Bank will unveil a bond-buying stimulus package at a crunch policy meeting on Thursday, while the anti-bailout party Syriza maintains a lead in the polls going into Greece's general election on Sunday, it said.

Meanwhile, a U.S. holiday also made for relatively thin conditions at the start of a week in which investors continue to digest the fallout of the Swiss National Bank's shock decision last week to scrap the franc's exchange rate cap and that will be marked by a barrage of major data from China and elsewhere, said Reuters.

Hong Leong IB Research on Monday had said a positive announcement by Najib would spur index higher to reclaim 1,763 (10-week moving average) and 1770 (monthly high) levels, respectively.

“Key short term supports are situated at 1,732 (20-day moving average and 38.2%) and 1,720 (50% FR),” it said.