Analysts Give Positive Recommendations To This Sector - Kakiforex.com - Financial Market Media No. 1 in the World Analysts Give Positive Recommendations To This Sector Analysts Give Positive Recommendations To This Sector

March 18, 2021

Analysts Give Positive Recommendations To This Sector

 Cash assistance worth almost RM8 billion announced under the Strategic Program to Empower the People and the Economy (PEMERKASA) yesterday is expected to boost consumer sentiment and spending.


The matter was stated by MIDF Amanah Investment Band Bhd Research (MIDF Research).


Bernama reported that the research firm had increased its recommendation on the consumer sector to 'positive' from 'neutral' previously.


"We expect this cash assistance to boost consumer sentiment and spending following higher allocations and will likely benefit the consumer sector," MIDF Research said in a post today.



Yesterday, the Prime Minister, Tan Sri Muhyiddin Yassin announced that under PEMERKASA, this cash assistance will be paid to recipients affected by the pandemic as well as for low -income groups.


On the government's announcement on the Wage Subsidy Program 3.0 amounting to RM700 million with an extension for another three months for companies that should be closed during the Movement Control Order (PKP), MIDF Research expects the program to potentially benefit retailers.


MIDF Research also projects that the reopening of the economy and the easing of controlled movements will benefit the consumer sector.


"We hope the adjustment to standard operating procedures (SOPs) can provide more room to increase consumer spending as consumers who have not been able to physically buy at the grocery store may be more motivated to go out and shop," he said.


Apart from that, the easing of controlled movements is also expected to boost sentiment, especially ahead of the Hari Raya Aidilfitri celebration next May.