Kenanga upgrades consumer sector to 'overweight'

KUALA LUMPUR: Kenanga Research has upgraded the consumer sector to "overweight” on the back of its bullish view on midmarket retailers.

This comes as consumers rekindle shopping in person, with the midmarket retailers’ customer base skewed towards the middle 40 per cent (M40) income group whose spending power is less impacted by the high inflation given their healthy household balance sheet, as well as their ability to pass on higher costs and hence maintain their margins.