KUALA LUMPUR, Jan 17 – The consumer sector is poised for a better year in financial year 2020 (FY20) and is expected to post a 6.9 per cent earnings growth based on steady domestic demand.
Maybank Investment Bank Research in a note today said 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 per cent and lower private consumption growth of seven per cent.
“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 per 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. — Bernama
