KUALA LUMPUR (Oct 24): The FBM KLCI remained flat at mid-morning as measures announced in Budget 2017 were seen as lacking the impetus to lift market sentiment.

At 10.05am, the FBM KLCI rose 1.79 points to 1,671.77.

The top gainers included Heineken Malaysia Bhd, Panasonic Manufacturing Malaysia Bhd, KPJ Healthcare Bhd, Teck Guan Perdana Bhd, Hong Leong Industries Bhd, UMW Holdings Bhd, Petronas Gas Bhd, Ta Ann Holdings Bhd and Public Bank Bhd.

The actives included BCM Alliance Bhd, Hibiscus Petroleum Bhd, Vivocom Intl Holdings Bhd, Dagang Nexchange Bhd, Asia Media Group Bhd, Sinotop Holdings Bhd and Iris Corp Bhd.

The decliners included British American Tobacco (M) Bhd, Bursa Malaysia Bhd, Carlsberg Brewery Malaysia Bhd, Kuala Lumpur Kepong Bhd, Hap Seng Consolidated Bhd, Allianz Malaysia Bhd, Alliance Financial Group Bhd, Pharmaniaga Holdings Bhd, Berjaya Auto Bhd and Berjaya Sports Toto Bhd.

Asian stocks were subdued early on Monday after Wall Street's sluggish performance at the end of last week, while the dollar hovered near nine-month highs as fresh comments from a Federal Reserve official boosted bets of a rate hike by year end, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan inched down 0.1%, it said.

Hong Leong IB Research said that overall, it believes Budget 2017 is mildly positive (especially for the small/mid cap stocks following the RM3 billion funds to invest) for the market given broader positive impact against limited negative shocks (i.e. Telekom Malaysia Bhd), which would eventually to lift FBM KLCI 2017 earnings to grow 9.5% after recording a three consecutive yearly decline.

"Technically, only a decisive break above immediate resistance of 1,675-1,684 will trigger a resumption of rally to retest 1,700 psychological barrier.

"Failure to do so will witness the FBM KLCI to continue to engage in sideways consolidation mode with key supports at 1,645-1,657 zones," it said.

Meanwhile, Budget 2017, which was tabled last Friday, was without a central theme this time round unlike previous years, with the focus, however, addressing rising living costs, according to Public Invest Research (Public IB).

In its market strategy report today, Public IB said the Budget was lacking significant punch which may have the off-chance of altering the course of the economy despite challenging times is another reflection of the times through Budget 2017.