Tuesday, October 4, 2011

Consumer sector to stay resilient, says OSK Research

KUALA LUMPUR: The consumer sector will continue to be rather resilient as compared to other sectors given their low equity beta, steady earnings growth track record and decent dividend yields, despite the weakening equity market conditions, said OSK Research.

In a note Tuesday, Oct 4, the research house said the sector remained rather resilient during the last crisis in 2008/09 and rerated strongly post crisis.

Continuous expansion into new markets, internal cost saving initiatives, low unemployment rate, rising disposable income, stabilising food commodities prices and a strong RM against USD would ensure continued sales growth and profitability, it said.

'We maintain Overweight on the Retail subsector and upgrade the F&B subsector from Neutral to Overweight,' it said.

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