CGS-CIMB: Immunisation programme to lift market sentiment, boost recovery
KUALA LUMPUR: CGS-CIMB Research believes that a successful execution of the National Covid19 Immunisation Programme (NIP) will be the key to lifting market sentiment and prompting investors to gravitate towards an economic recovery play.
In a research note yesterday, it said Malaysia was on track to achieve its Phase One target to administer Covid-19 vaccines to 500,000 individuals by endApril.
“As of March 26, 104,931 individuals in Malaysia have completed the entire Covid-19 vaccination regime, (while) 446,617 individuals have received the first dose of the vaccine.”
However, the research house said the key test was Phase Two, during which the government targets to vaccinate 9.4 million individuals over five months.
“To achieve this, it would need to raise the number of shots per day to an average of 62,666 shots versus 20,813 daily shots over the past three weeks under Phase One.”
Malaysia’s Covid-19 cases have also declined from its year-todate peak of 5,728 new confirmed cases on Jan 30, to 1,275 new confirmed cases on March 26.
“We observed that since Malaysia lifted the Movement Control Order on March 5 in Kuala Lumpur, Selangor, Penang and Johor, new cases have continued to decline.
“This is a good sign, in our view, for the country’s economic recovery momentum.
“We keep our FBM KLCI target of 1,759 points (12-month forward price earnings ratio of 16.2 times).
“Our top three picks are Inari, Public Bank and Telekom Malaysia.”