KUALA LUMPUR: Consumer stocks, which are the best performer so far this year, continue to dominate the gainers’ list on Bursa Malaysia in early trade.
The Bursa Malaysia Consumer index added 3.1 points to a record high of 722.08 points this morning.
Nestle (M) Bhd , Dutch Lady Milk Industries Bhd and Fraser & Neave Holdings Bhd (F&N) have been hitting historical highs.
Nestle surged RM3.60, or 2.29% to RM161 leading the top gainers’ list. Nestle has gained a whopping RM16 since last Friday.
Another counter that hit its all time-high is Dutch Lady. The counter rose RM2.14, or 3.01% to RM73.28.
F&N also hit its all time high, rising 78 sen, or 2.37% to RM33.68.
Ajinomoto rose 80 sen, or 3.29% to RM25.10.
Fortress Capital chief executive officer Thomas Yong was quoted by Starbiz as saying the strong share price increase of Nestle, Dutch Lady and F&N was due to heightened market volatility.
“Market volatility has increased since the beginning of February 2018 amid concerns of a faster-than-expected pace of monetary tightening by the US Federal Reserve. In view of the uncertainty and volatility, equity investors are reducing risk by switching into defensive stocks.
“Also, with a low free float and trading liquidity, these defensive stocks are moving up fast as investors load up the stocks,” Yong said.