Consumer Staples to Benefit from Expanded SST, Analysts Say

Analysts expect a "muted" outlook for consumer stocks as consumers shift spending priorities to essential goods over discretionary items due to the expanded SST and cost-of-living concerns. Consumer staples are expected to be more insulated from tax-driven volatility and are favored over discretionary retailers. Top picks include Fraser & Neave Holdings, Aeon Co, and Life Water Bhd, while Spritzer Bhd is upgraded to "buy" and Oriental Kopi Holdings Bhd is downgraded to "neutral". The strengthening ringgit is seen as favorable for businesses reliant on imports.