Stockwatch

Guinness Anchor 

THE tax hike on beer is not surprising, but the quantum is shocking. Guinness Anchor's management, whose marketing efforts have begun to reap fruit, is definitely unhappy with the 26% rise in excise duty. Any increase in selling price as a result will inevitably encourage demand for smuggled beer. Now the brewery is facing a more serious threat of losing market share to contraband, in addition to stiff competition in the legal market. Guinness Anchor share price surged to a six-year peak of RM5.20 last month after it announced a 20% growth in the last financial year's pre-tax profit. But analysts said the latest tax hike was likely to dampen sentiment on the stock.