=MARKET BUZZ: Malaysia's Consumer Stocks At Record High On GST Removal
KUALA LUMPUR (May 17) -- Bursa Malaysia Consumer index up 1.1% to record high at 728.50, after government announced scrapping of goods and services tax (GST) from Jun 1. British American Tobacco (Malaysia), which has the fourth-highest weight, leads index with 4.1% gain at MYR32.84. "We are positive on the development as it would immediately lift consumer sentiment, and general average selling prices for goods and services will ultimately be broadly cheaper to the end consumer, even after the reintroduction of sales and services tax," says AmInvestment Bank in investor note; upgrades sector to Overweight. Adds, boost to the sector coincides with a downcycle in agricultural commodities prices. "With the upcoming economic stimulus to be implemented by the newly elected Pakatan Harapan government, coupled with the feel-good sentiments arising from the new administration, we believe that the consumer sentiments index will continue to strengthen going forward," says AllianceDBS Research in investor note.
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