KUALA LUMPUR, July 29 (Bernama) -- Bursa Malaysia rebounded to close higher on Wednesday on selective buying of defensive stocks after a volatile trading session. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said consumer products and services stocks lifted the key index higher, overcoming lingering geopolitical concerns. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.08 points to 1,715.56 from yesterday’s close of 1,712.48. The benchmark index, which opened 1.91 points higher at 1,714.39, moved between 1,710.79 and 1,720.59 during the day’s trading. In the broader market, gainers outstripped decliners 550 to 476, while 612 counters were unchanged, 1,129 untraded, and 48 suspended. Turnover rose to 2.96 billion units valued at RM2.48 billion from 2.94 billion units valued at RM2.56 billion on Tuesday.
CIMB Securities has expressed optimism toward Malaysia’s latest fiscal stimulus, predicting a short-term boost for the consumer sector as the government rolls out new support measures aimed at easing cost-of-living pressures and encouraging domestic spending ahead of Merdeka and Malaysia Day.
Key Highlights of the Stimulus Package:
RM100 e-credit for all Malaysians aged 18+, benefiting 22 million people under the Sumbangan Asas Rahmah (SARA) programme. Valid from Aug 31 to Dec 31, 2025 at over 4,100 outlets including Mydin, Lotus’s, Econsave, and 99 Speedmart.
RON95 petrol price slashed from RM2.50/litre to RM1.99/litre, benefiting 18 million vehicles. More details on subsidy rationalisation to come by end-September.
September 15 declared a public holiday to spur domestic tourism and service sector activity.
RM500 million allocation to cap toll hikes on 10 highways, focusing on Klang Valley and Putrajaya.
Overall budget for the initiative doubled to RM600 million for 2025.
Who Stands to Benefit?
CIMB’s report views the stimulus as “incrementally positive”, expecting it to lift near-term spending, especially on essential and value-based goods.
Retailers:
$99SMART (5326.MY)$ – With 900–1,000 outlets in the SARA programme, it's well-positioned to grab a large share of stimulus-fueled spending.
$ECOSHOP (5337.MY)$ – Over 50% of its 349 outlets participate in SARA.
$MYNEWS (5275.MY)$ – Expected to benefit from its 30 Supervalue stores in the Rahmah Madani initiative.
F&B Manufacturers:
$NESTLE (4707.MY)$, $F&N (3689.MY)$, $QL (7084.MY)$, and $FFB (5306.MY)$ are poised to gain from increased demand for essential food and beverage items eligible for purchase with the RM100 e-credit.
Balanced View Amid Headwinds
Despite the expected near-term lift, CIMB Securities maintains a Neutral stance on the consumer sector, citing balanced risks:
Continued weak consumer sentiment
Higher sales tax on non-essential items
Boycott impacts affecting select companies
Rising rental costs from expanded Sales and Service Tax (SST)
CIMB’s Top Consumer Picks:
$99SMART (5326.MY)$
$FFB (5306.MY)$
$PADINI (7052.MY)$
These names stand out for their defensive business models, growth prospects, and attractive valuations, making them well-positioned in the current environment.
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