Further delays in the general election will continue to be a downer for the stock market, analysts said.

Hong Leong Investment Bank in a report today said that this is despite the fact that most investors have already reduced their exposure in the market.

It added that the lacklustre streak will prevail as any surge will be hampered by profit-taking.

"(We) believe that the prolonged delay has raised anxiety levels rather than calm nerves,” it said, expecting a challenging first half of 2013.

Calling for investors to take a defensive strategy, Hong Leong said that a “kneejerk reaction” is expected upon dissolution of Parliament.

“(We) reiterate that the market is expected to remain lacklustre in the short term as any surge will trigger profit-taking and “de-risking” ahead of the 13th general election,” it said.

Parliament will automatically dissolve on April 28, if the prime minister does not call for snap polls before that.

Agreeing, TA Research said that “cautious trade” and “weak retail participation”, dominated the market in February due to “uncertainties” over the polls.

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