Malaysia: Beer producers turn out to be best companies to hold shares in last year

The brewery sector of a mostly Muslim country is not an obvious place to go stock hunting, but in 2011 Malaysia’s beer producers turned out to be some of the best companies to be holding, The Financial Times reported on May, 30.

“During bad times, people still drink,” says Shakira Hatta, a consumer analyst with Affin Investment Bank in Kuala Lumpur.

Ms Hatta’s bullishness on Carlsberg Brewery and Guinness Anchor in Malaysia helped her outperform her benchmark by 33 per cent, making her Asia’s top stock picker of last year according to StarMine data.

In addition to reliable demand, the sector had yields of 4 to 5 per cent, she says, and Carlsberg was completing the acquisition of a Singapore brewery that offered space to expand. For the full year, the brewer rose 45 per cent.

Turmoil internationally but reliable consumer demand domestically – especially in south-east Asia – was a common theme throughout 2011.

Asian markets took a nosedive in August from which some have yet fully to recover.

Yet, as investors shied away from most risk, consumer goods groups held their ground.

30 May, 2012