16 theSun | THURSDAY MARCH 5 2009

KLCI 866.93 T
 1.81 Nikkei 7,290.96 S
61.24
business STI 1,544.34 S
15.83 TSEC 4,541.42 S
106.08
Hang Seng 12,331.15 S
297.27 KOSPI 1,059.26 S
33.69
SCI 2,198.11 S
126.68 S&P/ASX200 3,166.40 T
52.80

KL market summary
MARCH 4, 2009

Prices close slightly lower INDICES

FBMEMAS 5,671.86
CHANGE
-11.78
SHARE prices on Bursa Malaysia closed The Finance Index went down 54.19 COMPOSITE 866.93 -1.81
slightly lower yesterday on lower trading points to 6,699.40. INDUSTRIAL 2,055.30 -11.34
volumes as most investors remained on the However, the dealers said that further CONSUMER PROD 281.53 -0.84
INDUSTRIAL PROD 65.21 -0.07
sidelines awaiting fresh leads, dealers said. losses were capped by gains on plantation
CONSTRUCTION 163.86 +1.47
The benchmark KLCI declined 1.81 points counters amid report of demand likely to pick TRADING SERVICES 114.62 -0.18
to close at 866.93. up following a decrease in palm oil output FINANCE 6,699.40 -54.19
The dealers said that finance counters due to floods. PROPERTIES 514.73 +2.14
continued to drag down the local bourse as The Plantation Index added 39.97 points PLANTATIONS 4,318.05 +39.97
more banks were expected to underperform to 4,318.05. MINING 241.15 +10.14
in the second quarter on rising bad debts and Of the plantation counters, IOI Corp gained FBMSHA 5,951.94 +3.00
lower loan borrowings. six sen to RM3.66 and Kuala Lumpur Kepong FBM2BRD 3,953.81 -1.00
TECHNOLOGY 12.88 +0.04
Among the counters were Maybank which increased 20 sen to RM9.90.
lost two sen to RM4.84, Public Bank which Gainers led losers by 239 to 232 while 205 TURNOVER VALUE
dropped 20 sen to RM8.20 and Hong Leong counters were unchanged, 568 untraded and 327.192mil RM539.534mil
Financial which eased four sen to RM4.54. 32 others suspended. – Bernama

Malaysia on brink
of recession, says MIER
KUALA LUMPUR: Malaysia stands on the
brink of recession as falling demand hits
exports and manufacturing with growth
expected to reach just 0.5% for the year, an
independent think tank said yesterday.
“We forecast the economic growth for
the first half of the year will be negative
which will put us in a technical recession
but show positive figures in the second
half,” Prof Emeritus Datuk Mohamed Ariff
Abdul Kareem, executive director of the
Malaysian Institute of Economic Research
(MIER) told AFP.
“Overall, it will be 0.5% growth for this
year in the best-case scenario. The worst-
case scenario is there is a 50% chance of a
full-blown recession this year,” he warned.
In January, the institute slashed its gross
domestic product growth forecast to 1.3%
from an earlier 3.4% prediction while the
government is sticking to its 3.5% growth
for 2009.
Mohamed Ariff said the fiscal deficit
could surge to 8% of GDP if a second eco-
nomic stimulus package to be unveiled by
the government on March 10 is more than
RM30 billion.
“It could be between 6% and 8% depend-
ing on the size of the stimulus package,”
he said.
Malaysia last year unveiled a RM7 billion
stimulus package to help boost the economy
and keep the country out of recession but
Deputy Prime Minister Datuk Seri Najib
Abdul Razak said the second package would
be bigger and more comprehensive.
The government has already widened
its deficit forecast for 2009 to 4.8%, from
the 3.6% predicted in August, due to the
additional government spending.
Official data released last week showed
Malaysia’s economic growth slowed to just
0.1% in the fourth quarter of last year, hit
by falling exports and manufacturing as
demand continues to evaporate.

Aussie woes stoke global recession fears Asian budget airlines

SYDNEY: The first contraction in Australia’s
economy for eight years sent shockwaves
through markets yesterday, after the US un-
veiled a credit drive to stem a crisis that shows
no sign of relenting.
Dashing hopes Australia could avoid the global
recession, shock figures showed the economy
contracted 0.5% in the December quarter, well
below market expectations of 0.1% growth.
Ending a long run of expansion on the back
of a China-driven resources boom, the figures
came despite government attempts to kick
start the economy with two stimulus packages
worth more than A$50 billion (RM120 billion).
Treasurer Wayne Swan said the figures
were a “sobering reflection” of an extremely
difficult global environment that was likely to
get worse before it improves.
“Although the Australian economy has
held up better than most other economies,
the inevitable impact of the global recession is
clearly evident in today’s data,” he said.
The news sent currency and share markets
plummeting, with the Australian dollar plunging
0.65 US cents to 63.15 US cents immediately
after the announcement and the benchmark SP/
ASX200 share index closing 1.6% lower. – AFP
launch price war
SINGAPORE: Asian low-cost airlines are offering dirt-cheap
tickets to perk up travel during the summer holidays amid
the global economic downturn.
Singapore-based Tiger Airways, which flies to destina-
tions in Southeast Asia, Australia and China, announced on
Tuesday it would launch summer fares starting at about
US$16 (RM59), including taxes.
The carrier, which is 49% owned by Singapore Airlines,
said in a statement it would offer its “biggest ever network
of seats” and was adding new destinations for its summer
schedule from March 29 to Oct 24.

Honda, Nissan,
Mazda may seek
public funds
TOKYO: Japanese carmakers Honda, Nissan
and Mazda said yesterday they might seek
crisis loans from the government, underscoring
the industry’s deepening woes in the face of a
global economic downturn.
They would join the world’s largest auto-
maker, Toyota Motor, whose financial unit has
already requested public money to help it
through a credit crunch that has made it more
expensive to raise funds in financial markets.
“Due to current economic conditions, we
are considering using public funds in addition to
our usual sources of funding,” a Honda spokes-
woman said.
The companies declined to say how much
public aid they would request from the state-
backed Japan Bank for International Coopera-
tion.
“We’re not in a situation where we desper-
ately need funds, but as the opportunity has
presented itself, we believe we should make the
best use of whatever funding” is available, said
Nissan spokesman Mitsuru Yonekawa.
Japan’s Mitsubishi Motors meanwhile said
that it was not considering borrowing govern-
ment funds at the moment due to a lack of
clarity over the lending scheme. – AFP
“Tiger Airways is bucking the global aviation trend,” the
airline said, referring to declining passenger numbers for
full-service carriers worldwide.
Rosalynn Tay, managing director for Tiger Airways
Singapore, said the airline would “demonstrate that we
will continue to grow our business even in these difficult
trading conditions”.
Jetstar Asia, another Singapore-based budget airline,
said it had extended until Aug 16 a promotion to beat the
cheapest price offered by rivals.
Under the promotion, should a traveller find another
published online fare cheaper than the lowest available on
People www.jetstar.com, the airline will beat the price by 10% if
are the customer makes an instant reservation by phone.
“The current economy makes it a tough operating envi-
going for ronment where competition will be intense and fares will
cheaper be under pressure,” Jetstar Asia’s commercial head Leslie
fares Ng said in a statement. “People are going for cheaper
as they fares as they become more cost conscious and want to
become get value for money deals.”
Malaysian budget airline AirAsia also has its “take me
more cost away” promotion. Among its offers is a one-way flight
conscious from Singapore to Bangkok starting from US$43 (RM159),
and want inclusive of taxes, for travel from March 23 to Sept 11,
to get according to its website.
Comparatively, a return flight to Bangkok on Singapore
value for Airlines costs US$337 (RM1,247), inclusive of taxes.
money AirAsia is also offering a number of tickets starting from
deals.” 26 US cents for travel within Malaysia.
Indonesia’s Lion Air is selling a one-way trip from Sin-
gapore to Bali for as low as US$5.80 (RM21.50) for travel
from June 1 to Sept 30, according to its website.
Thailand’s Nok Air is offering one-way fares for as low
as 25 US cents, excluding taxes and fees, for domestic
flights for those travelling from May 15 to Sept 30, its
website showed. – AFP