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Stock market, tourism stocks set to rise today

By ZAIDI ISHAM ISMAIL
[email protected]

 

KUALA LUMPUR Oct 11 - Bursa Malaysia is set to rise today spearheaded by tourism stocks.

 

This is following the announcement by the government to allow inter-state travel effective today.

 

This will directly have a direct impact on the country's economy.

 

"Tourism stocks such as Genting Bhd, Berjaya Corp Bhd and YTL Corp Bhd will be positively affected.

 

Felda Travel and TH Travel and homestays will impact domestic travel immensely," an analyst at Maybank Securities told DagangNews.com.

 

He added AirAsia which is already showed signs of improvement last few weeks will also perform better and to a certain extent Malaysia Airlines.

 

 

airasia

 

 

And shops and malls are set to breathe again with the influx of tourists.

 

Meanwhile, a Permodalan Nasional Berhad fund manager said the FBMKLCI is set to surge in the near term.

 

"Due to this development, it could reach 1,600 points from 1,563 at present also fuelled by surging crude oil, commodity and oil palm prices.

 

Melaka Securities meanwhile said the FBM KLCI continued to build on positive sentiment and elevated commodities prices on Friday, taking cue from buoyant regional markets.

 

"We expect the buying momentum on the local bourse to continue, backed by brighter economic prospects as the country will resume the interstate and overseas travel from today onwards after adults’ vaccination hitting 90%. 

 

Also, the interstate travel may reboot the tourism and transportation companies specifically for the tourism segment.

 

 

oil

 

 

Meanwhile, the CPO price rallied, trading above RM4,950 level while the crude oil price stood above US$82 per barrel mark. 

 

Sector focus will be on aviation, tourism and transportation companies following the reopening of interstate travel.

 

The inter-state travel will obviously have spill over effects on other sectors of the economy such as highway toll collection, shops at rest and recreational areas at highways and shops in little towns.

 

It will also spike up car fuel usage and boost the income of petty traders in towns and at the beaches.

 

This will lead to an improved domestic spending, higher employment and brighter industrial production index.

 

All signs point to a recovering economy which will hopefully put Malaysia back on the growth trajectory. - DagangNews.com