Government announcements that interstate and overseas travel will be allowed provide a significant boost to Malaysia’s tourism activities, including the transportation sector, analysts from AmBank Research say.
They also say the news is positive for Malaysia’s equity market.
“We believe that the sector which stands to benefit the most is the transportation sector, specifically Malaysia Airports and Perak Transit. For Malaysia Airports, it should translate into higher passenger volume.
“As for Perak Transit, the company should benefit from higher rental income from its integrated public transportation terminal segment as footfall recovers.
“We also expect Perak Transit to ride on higher sales volume from the petrol stations that it operates. We have added Perak Transit into our top 10 picks with a BUY call and fair value of RM1.08,” the analysts say.