OSK Research said consumer companies will fare better than on average, despite the tepid economic scenario in 2012, which is expected to dampen earnings.

In a research note today, OSK Research said this was mainly due to firm demand for their products, and the fact that the companies had taken appropriate measures while having learnt from the last crisis in 2008/09.

The research company also expects consumer spending to remain relatively stable as disposable income increases, amid the country's low unemployment of three per cent.

"The financial performance of food and beverage (FandB) companies depends mainly on fluctuations in food commodity prices and their ability to maintain low manufacturing costs," it said.

OSK Research is maintaining its overweight recommendation on the consumer sector, with its top picks being QL Resources Berhad, for its uninterrupted earnings growth, as well as Padini Holdings Bhd, for attractive valuation and good dividend yield. -- Bernama