KUALA LUMPUR (June 5): Shares in automotive players shot up in late trading after the prime minister announced a sales tax exemption for new car purchases.

In a televised speech on the nation's short-term economic recovery plan, Tan Sri Muhyiddin Yassin said the government will be granting a 100% sales tax exemption for local passenger cars and 50% for imported cars from June 15 to Dec 31.

This is to promote the growth of the country's automotive industry, the prime minister said.

At 4.41pm, the clear winner in this sector was UMW Holdings Bhd, which was up 19.66% or 46 sen at RM2.80.

This was followed by Bermaz Auto Bhd, which grew 13.64% or 18 sen to RM1.50, and DRB-Hicom Bhd, which jumped 12.73% or 21 sen to RM1.86.

MBM Resources Bhd was up 8.57% or 27 sen at RM3.42, Tan Chong Motor Holdings Bhd leapt 8.41% or nine sen to RM1.16, while Cycle & Carriage Bintang Bhd rose 5.07% or seven sen to RM1.45.