KUALA LUMPUR (Oct 7): CGS-CIMB Research expects Budget 2020 to be mildly positive for the KLCI, and potential beneficiaries are technology, consumer and tourism-related sectors.

The research house said the construction sector could benefit from higher development expenditure.

It said consumer sector will likely benefit from cash transfers to the B40 group and an increase in tourism activities.

"Brewers and gaming sectors could also benefit as there could be measures to boost tourist arrivals,” it said.

In a strategy note Oct 5, the research house said over the past ten years, KLCI posted returns of 0.5% one week before budget.

“However, we found that the pre-budget rally typically does not last.

“We maintain our KLCI target of 1,583 points and defensive stance for the market,” it said.