Professional Documents
Culture Documents
TheSun 2009-03-20 Page15 Fed To Buy Treasuries To Boost Economy
TheSun 2009-03-20 Page15 Fed To Buy Treasuries To Boost Economy
TheSun 2009-03-20 Page15 Fed To Buy Treasuries To Boost Economy
business KLCI
STI
852.18
1,584.86
4.22
8.92
Nikkei
TSEC
7,945.96
5,035.93
-26.21
-11.61
Hang Seng 13,130.92 13.75 KOSPI 1,161.81 -8.14
SSE 2,265.76 42.03 S&P/ASX200 3,480.20 33.90
to boost economy
INDUSTRIAL 2,054.34 -3.56
CONSUMER PROD 280.33 +0.55
INDUSTRIAL PROD 64.39 +0.10
CONSTRUCTION 163.35 -0.13
TRADING SERVICES 113.55 +0.73
FINANCE 6,315.45 +15.35
PROPERTIES 500.28 +1.85
PLANTATIONS 4,386.47 +9.45
WASHINGTON: The US Federal Reserve said lifted Asian stock markets outside Japan to MINING 241.15 unch
it will start large-scale buying of government a five-week high. FBMSHA 5,904.28 +11.19
debt as part of an extra US$1 trillion (RM3.7 But the dollar suffered its biggest one-day FBM2BRD 3,835.45 +14.92
trillion) injection into the ailing economy, drop since 1985 against a basket of main TECHNOLOGY 11.59 +0.08
sparking a rally in government bonds and currencies, stung by fears that by effectively
trouncing the dollar. printing money, the Fed would create an over- TURNOVER VALUE
The Fed announced on Wednesday it supply of the world’s main reserve currency. 303.824mil RM543.544mil
would buy up to US$300 billion (RM1.11 Some economists said that even at such
trillion) of longer term US government a hefty cost the Fed may not get what it was
debt over the next six months in the first hoping for.
operation on such a scale since the 1960s.
It also would expand an existing scheme to
“Will the next trillion dollar injection gain
any more traction? Probably not. Banks
CI stays up
buy mortgage-related securities by another don’t want to lend and borrowers don’t want SHARE prices on Bursa Malaysia closed mixed
US$850 billion (RM3.145 trillion), to US$1.45 to borrow,” said economists at DBS Bank in with key heavyweights remaining up boosted
trillion (RM5.37 trillion) this year. Singapore. by the overnight rally on Wall Street, dealers
The move stunned markets as few Fed “The fact remains that expansionary said.
watchers had expected it to follow Japan policy at the bottom of a cycle is like pushing The benchmark KLCI ended the day 4.22
and Britain in pumping money directly into on a string,” the bank’s research team said in points higher at 852.18, after opening 2.17
the economy so soon. a note, stressing that fixing the ailing banks points higher at 850.13.
The news drove US home mortgage rates was necessary for recovery to take hold. A dealer said the overnight surge on Wall
towards record lows and Treasury bond The Fed’s announcement came hours Street followed the Federal Reserve’s an-
yields dived the most in one day since the after the Bank of Japan boosted its govern- nouncement that it would inject a further US$1
1987 stock market crash. ment bond purchases plan for this year trillion (RM3.7 trillion) into the economy, includ-
The Fed’s move to add direct govern- by nearly a third to ¥21.6 trillion (RM832.5 ing a US$300 billion (RM1.11 trillion) purchase
ment bond buying to its expanding arsenal billion) and days after the Bank of England of long-term Treasuries.
of unconventional weapons inspired hopes started buying government bonds with Bursa is expected to move in line with Wall
that the aggressive action will help pull the newly created money to breathe life into the Street’s movement today.
US economy out of a crippling recession and faltering British economy. – Reuters Investors were encouraged with the posi-
tive movement on Dow Jones, which chalked