This is given that more sectors of the economy are now allowed to operate their business as usual compared with the previous stricter MCO in Q1 and Q2 last year.
Companies linked to the oil and gas, and plantation are expected perform well and reap the benefits from the much higher crude oil and crude palm oil prices. “However, the greenback will slowly recover in the coming months with the changing of guard in the United States.”This will affect the consumer sector, particularly in the retail sub-sector and the brewery sector where the impact could be most glaring, added Kaladher.
Meanwhile, Rakuten Trade Research vice- president Vincent Lau concurred that corporate earnings would be less severely impacted by the MCO 2.0 in Q1FY21 compared with the first MCO in March last year.