Consumer stocks rise as Malaysia revises GST rate to zero

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KUALA LUMPUR (May 17): Malaysia-listed consumer stocks rose after the government said it will impose zero percent GST on all goods and services in the country both locally made and imported effective June 1.

* British American Tobacco Malaysia +4.9%, Bonia Corp +4.4%, Power Root +4.1%, Padini +3.7%

* Bursa Malaysia Consumer Product Index gained 6.4% this week after Mahathir Mohamad won the general elections

* GST repeal isn’t as negative as many analysts have feared as it is offset by the reintroduction of the sales and services tax: Natixis Senior Economist Trinh Nguyen

** Doesn’t expect the SST to materially import Malaysian exporters’ competitiveness or the economy