KUALA LUMPUR (Oct 26): Oriental Food Industries Holdings Bhd (OFI) rose as much as 43 sen or 30%, as investors chased food-based shares in anticipation of tax incentives for the sector under Budget 2016.

At 4:21pm, OFI rose to RM1.88, its highest so far today, with some five million shares done. At 4:33pm, the stock was the third-largest gainer across Bursa Malaysia.

During last Friday's Budget 2016 announcement, the government proposed to extend tax incentives for food production till 2020.

Today, analysts said such policy augured well for food producers.

"As for tax incentive for food manufacturers, it is definitely positive for food manufacturers that are planning to expand their production capacity," Kenanga Investment Bank wrote in a note.

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