PETALING JAYA: The consumer sector has been reduced to “underweight” from “neutral” by HLIB Research, on expectations of higher commodity prices and tepid consumer spending in 2020.
The research house, however, is positive on brewers, given the government’s continued enforcement on illicit alcohol.
HLIB Research noted that the profitability of many fast-moving consumers goods (FMCG) players such as Nestle, Hup Seng Industries, Fraser and Neave, and Dutch Lady
Malaysia, as well as food and beverage (F&B) players like Berjaya Food (BFood), are tied to commodity prices.
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