This article first appeared in The Edge Financial Daily on July 19, 2018

KUALA LUMPUR: Maybank Investment Bank Bhd (Maybank IB) is issuing eight new call warrants (CWs) over ordinary shares in Nestlé (Malaysia) Bhd, AEON Co (M) Bhd, Padini Holdings Bhd, Dutch Lady Milk Industries Bhd, FGV Holdings Bhd, Sime Darby Plantation Bhd, Top Glove Corp Bhd and Genting Bhd.

The CWs will be listed today, with an issue size of 100 million each.

“This tranche is being offered in response to recent activity in the consumer sector, arising from various macro events affecting Malaysia’s economy,” said Maybank IB in a statement yesterday.

Maybank IB Research expects a boost in consumer spending as a response to the zerorisation of the goods and services tax and stabilisation of fuel prices via government subsidies.

“Furthermore, Budget 2018 has already incorporated measures to stimulate consumer spending, namely the “Cost of Living Aid” initiative, Hari Raya bonuses for civil servants and pensioners, as well as cuts in personal income tax.

“On the economic front, Malaysia’s underlying economic fundamentals remain favourable, with sustained trade and current account surpluses backed by rising crude oil prices,” said Maybank IB.

The CWs have a gearing ranging from 4.05 times to 9.76 times and a tenure of eight months.