PETALING JAYA: A consumption recovery will drive Malaysian equity returns and outperformance, said Nomura in a recent Malaysia strategy report.

It said various indicators such as consumer confidence, retail sales, low- to mid-end automobile sales and property loan applications have shown a sustained but fragile rebound, as the two-year drag due to the goods and services tax (GST) starts to dim on suppressed demand.

“A strong macro print and a gradual appreciation of the ringgit will likely sustain foreign inflows into equities, and we raise our KLCI targets by 3% each to 1,800 and 1,860 for end-2017 and 2018,” said Nomura.

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