KUALA LUMPUR: The consumer sector is poised for a better year in financial year 2020 (FY20) and is expected to post a 6.9% earnings growth based on steady domestic demand.
Maybank Investment Bank Research in a note today said while domestic consumer demand was projected to remain stable this year, however year-on-year growth could slow on the back of a slight decrease in gross domestic product growth to 4.4% and lower private consumption growth of 7%.
“This could hinder any potential improvement in consumer sentiment particularly if the ringgit continues to weaken.
“That said, higher disposable income from the minimum wage hike to RM1,200 a month, effective February 2020, in 56 major cities nationwide, will be positive to the broader economy,” it said.
Maybank IB has maintained a “neutral” call on the sector with selective “buy” on stocks including Padini Holdings, AEON Co and Berjaya Food. – Jan 17, Bernama