CGS-CIMB Research retains neutral on overall consumer sector

As for e-commerce, it is gaining traction in consumer staple space as more consumers turn to online shopping to procure their household food necessities. This will mainly benefit large scale consumer staple companies (Nestle and F&N) with established brands which are well-integrated into a number of major e-commerce platforms

KUALA LUMPUR: CGS-CIMB Equities Research retains its Neutral call on the overall consumer sector during the four-week long movement control order (MCO) from March 18 to April 14.

In its research note on Wednesday, it believed the resilience of consumer staple stocks has already been priced in at current valuations (35 times one-year forward P/E, slightly higher than its five-year mean).