Posted on 04 Sep 2008
The Asean consumer sector is showing its defensiveness in the current challenging economic environment, with the
Citi Investment Research reported the three countries' consumer sectors, based on YTD performance of component stocks, were up 7%, down1% and down 5% respectively in absolute terms.
All other Asian countries that Citi covered in the valuation recorded double-digit negative yields (see table). The consumer sectors in
Fundamentally, Citi said, key consumer names in
However, it also said that most of the Asean names' liquidity was poor. As a result, these stocks have not been actively traded during market downturns and thus their price depreciation is relatively less.
British American Tobacco (M) Bhd, the only Malaysian company that was mentioned in Citi's Asian consumer valuation report, ranked the highest in ROE with 164% but recorded the second lowest compounded annual growth rate in operating profit, at 0%.
In August, the Asian consumer sector mostly outperformed against respective benchmark indices except for
Citi said in general, the Asian markets' volatility was more severe than anticipated but the consumer sector's defensiveness might continue.
