theSun | THURSDAY MAY 7 2009 13

1,023.96 S
15.09 CLOSED
business KLCI
STI 2,179.03 104.68
S
Nikkei
TSEC 6,566.70 186.76
S
Hang Seng 16,834.57 404.49
S KOSPI 1,393.45  4.47
T
SCI 2,592.52 S
25.18 S&P/ASX200 3,867.10 T
23.30

KL market summary
MAY 6, 2009

Bursa buoyed by strong sentiment INDICES

FBMEMAS
CHANGE
6,811.43 +127.70
SHARE prices on Bursa Malaysia closed A dealer said the present strong sentiment COMPOSITE 1,023.96 +15.09
higher yesterday on improved sentiment with was buoyed by positive comments on the INDUSTRIAL 2,281.11 +9.38
strong interests seen especially in finance country’s financial system by Bank Negara CONSUMER PROD 303.67 +0.51
related stocks, dealers said. governor Tan Sri Dr Zeti Akhtar Aziz. INDUSTRIAL PROD 78.65 +2.02
The KLCI jumped 15.09 points or 1.49% to Leading the actives on the stock exchange CONSTRUCTION 200.67 +3.65
TRADING SERVICES 137.33 +1.74
close the day at 1,023.96, boosted by gains yesterday, KNM rose four sen to 72.5 sen, FINANCE 8,017.77 +239.73
mostly in Maybank and Bumiputra-Com- SAAG Consolidated went up three sen to 30 PROPERTIES 654.39 +19.18
merce. sen, Mulpha International added 3.5 sen to PLANTATIONS 5,062.46 +20.47
The key index had opened 0.22 of a point 46 sen and Talam Corporation inched up half MINING 279.65 UNCH
lower at 1,008.65 in the morning.
The KLCI moved between 1,001.79 and
a sen to 11 sen.
Of the heavyweights, Sime Darby increased
FBMSHA
FBM2BRD
TECHNOLOGY
7,104.44
4,429.19
14.83
+96.21
+113.92
+1.25
Asian markets
1,025.05 yesterday. five sen to RM6.70, Maybank rose 34 sen to
Gainers outnumbered losers by 666 to
106 while 152 counters were unchanged, 311
RM4.92, Tenaga went up 10 sen to RM7.45
and Bumiputra-Commerce was 25 sen higher
TURNOVER
2.506bil
VALUE
RM2.064bil
up ahead
untraded and 36 others suspended. at RM8.70. – Bernama
of US bank
‘stress tests’
IMF sees ‘long and severe HONGKONG: Asian markets were
broadly higher yesterday on continued
hopes for the global economy although
many dealers waited on the sidelines
prior to the announcement of “stress

recession’ for Asia

SINGAPORE: The International
Monetary Fund (IMF) yesterday
sharply slashed its growth out-
look for Asia, predicting a “long
and severe recession” for the
region’s wealthier but export-
reliant economies.
The US-based institution said
it now expected growth in Asia,
including Japan, would slow to
1.3% this year after an initial
forecast, made in the last quar-
ter of 2008, of 2.7% growth.
“The spillovers from the
global crisis have impacted
Asia with unexpected speed
and force,” the IMF said in its
regional economic outlook.
“Prospects for an imminent
rebound of economic activity
are weak,” it said, underlining
that the region is still heavily
dependent on exports at a time
when demand has weakened
because of the global downturn.
It said it now expected 4.3%
growth in 2010, down from an
initial forecast of 4.5%.
For emerging nations in
Asia, which excludes Japan, the
IMF lowered its growth forecast
to 3.3% from 4.4%. It put 2010
growth at 5.4%, down from an
initial 6%.
The region’s wealthier
economies “are expected to
experience a long and severe
recession” because of their
heavy reliance on high-tech
exports and extensive exposure
to the global financial system,
the IMF said.
Joshua Felman, an IMF
assistant director, said Asia’s
merchandise exports fell at an
annualised rate of 70% between
September 2008 and February
this year, substantially worse
than during the 1997-98 Asian
financial crisis.
“Why has the impact on Asia
been so jarring? The answer lies
in Asia’s exceptional integration
into the global economy,” Fel-
man said in Singapore.
“Much of the region relies
on technologically sophisti-
cated manufacturing exports ...
precisely those products which
global demand has collapsed.”
Massive stimulus measures
unveiled by several Asian govern-
ments were unlikely to help the
region turn around strongly, and
a rebound hinges on when the
global upswing begins, he said.
“Whenever exports have
slumped, Asia has typically
slipped into recession – and
Asia does not recover until
exports have started to revive.”
The IMF in the report urged
Asia to “rebalance” its growth
model and focus more on spur-
ring domestic demand.
The export-led model of
economic growth “may not
pay the same dividends as
in the past” as households in
advanced economies were now
expected to be more careful
test” results for US banks.
Hongkong jumped 2.46%, a fifth
Dream straight gain, while Singapore added
team more than 5%, Taipei put on almost
Chelsea 3% and Shanghai 1%.
However, there were dips in Syd-
pg 29 ney and Seoul as players decided to
about expenses because of the make the most of the big gains made
worldwide slowdown. earlier in the week.
Asia’s largest economy, Ja- Many traders were also sitting on
pan, is projected to shrink 6.2% the sidelines ahead of today, when the
this year, far worse than last US is to reveal which of the country’s
year’s contraction of 0.6%. 19 biggest banks are in need of further
The Japanese economy is capital raising.
expected to return to growth in Banking giant HSBC helped push
2010 with an expansion of 0.5%, the market to its fifth straight positive
the IMF said. session and highest close since Oct 3,
It said growth in China was dealers said. The market has surged
expected to be 6.5% this year and 15% over the past week.
7.5% in 2010, and forecast 4.5% HSBC rose 6.3% to US$61.60, con-
growth in India for 2009 and tributing 194.24 points to the Hang
5.6% the following year. Seng’s rise.
Within Southeast Asia, the In SYDNEY, the S&P/ASX 200
IMF report said that Malaysia, dropped 23.3 points to 3,867.1.
the Philippines and Thailand “The Australian market opened
would be affected more severely higher but soon sold off, closing
than other nations by the global weaker in line with overnight US
slowdown due to their heavier leads,” said IG Markets analyst Ben
reliance on high-tech exports. Potter.
Hongkong and Singapore, “Markets globally are treading wa-
seen as the most open econo- ter ahead of the official release of stress
mies, are likely to shrink 4.5%
test results on Thursday evening.”
and 10% respectively this year,
the IMF said. - AFP Australia’s largest investment
bank Macquarie Bank lost 2.49% to
A$34.40.
In SHANGHAI, the Shanghai Com-

‘Bank of America needs at least US$33.9bil’ posite Index, which covers A and B
shares, rose 25.18 points to 2,592.52.
The key index has risen 8% in the
WASHINGTON: Bank of America The Wall Street Journal mean- billion) in bailout cash into the ailing The number of banks thought past five trading days.
will need to raise between US$33.9 while, citing people familiar with institution since the world economic to need more funds had been 14 Dairy companies surged on specu-
and 35 billion (RM122.04 billion and the situation, said US regulators told crisis, which originated in the US, out of 19 at one point, the Journal lation Beijing would launch stimulus
126 billion) in capital to maintain its the Charlotte, North Carolina-based started to unravel in October 2008. said, citing sources familiar with the measures for the sector, traders said.
financial stability, US media reported bank late Tuesday that it needs to ad- The reports came ahead of results matter. In TAIPEI, the weighted index
yesterday. dress a roughly US$35-billion capital today from “stress tests” conducted US banking regulators and the surged 186.76 points to 6,566.7.
After days of negotiations, the shortfall. by US authorities on 19 top banks, Federal Reserve are set to release The market moved higher for the
government informed the banking Because the amount of capital including their capital adequacy results Thursday from stress tests fifth straight day on continued opti-
giant it needs US$33.9 billion, the needed exceeds what Bank of levels. of the 19 banks and estimates for mism about closer economic ties with
New York Times said, citing a bank America could raise by selling more The Journal has reported that 10 further public aid to help boost the China, dealers said.
executive. The amount is greater assets or shares to private investors, of the 19 banks subject to the tests ailing economy. Taiwan said last Thursday that it
than what executives think the bank the bank may end up with no option may need to raise more capital. The tests will cap a period of would allow institutional investors
needs, however. but to convert government shares The exact number of banks suspense that began when President from China to buy stocks listed on the
“We’re not happy about it because into common stock – meaning the US required to raise more funds has not Barack Obama’s administration island, in a further sign of warming
it’s still a big number,” said J. Steele government would become one of yet been determined, the financial unveiled in February its overhaul of ties between the rivals.
Alphin, the bank’s chief administra- the bank’s largest shareholders. daily said, but those affected could the bank bailout in a bid to restore In Seoul, the KOSPI ended down
tive officer. “We think it should be a The federal government has al- include banking giants Wells Fargo, stability to the financial system of the 4.47 points at 1,393.45.
bit less at the end of the day.” ready pumped US$45 billion (RM162 Bank of America and Citigroup. world’s largest economy. – AFP Technology stocks retreated as
investors took the strengthening of
the local currency against the dollar as
Fiat’s global ambitions move into high gear an excuse to book profits, amid rising
concerns about a potential weakness
NEW YORK: Fiat’s drive the Detroit-based company, gent need for the sale to be lenders that the Chrysler plants and slash thousands in their export competitiveness.
to create a global car giant unions fear Fiat will slash consummated.” sale promoted by President of jobs in the company’s bid Samsung Electronics declined 2.9%
moved up a gear yesterday job in its efforts to take over Fiat lawyer Hydee Feld- Barack Obama’s administra- to take over GM’s operations to 565,000 won and Hynix Semicon-
when a judge green-lighted General Motors’ European stein said the deal would tion was unfair and left no in Europe. ductor dropped 1.3% to 14,750.
the rapid sale of Chrysler operations, including Opel. create “a phoenix rising time for competition. Their concerns were Korean Air rose 3% to 41,850 won.
as the Italian group denied But after a near eight- from the ashes”. The Obama administra- heightened after a German In SINGAPORE, the blue chip
plans to cut 18,000 jobs in hour hearing at a New Although Fiat now looks tion has set a June 1 dead- newspaper reported that a Straits Times Index jumped 104.68
any Opel takeover. York bankruptcy court on on track to rescue Chrysler line to reach a deal to keep sensitive internal document points to 2,179.03.
Fiat is looking to become Tuesday, Judge Arthur from collapse, Gonzalez said Chrysler out of bankruptcy. showed that Fiat would want The market was helped as two
the world’s second biggest Gonzalez rejected argu- that other bidders had the Under the plan, Chrysler to cut 18,000 jobs, closing or local banks beat earnings expectations
automaker after Toyota ments from a group of opportunity to compete. aims for a “surgical” bank- scaling down 10 factories in despite profits being hurt by the global
through deals with troubled Chrysler lenders who have Parties have until May 20 ruptcy to wipe out a portion Europe if it reaches a deal downturn.
US carmakers Chrysler and denounced the restructuring to present their offers before of its debts, allowing the with GM. UOB rose S$1.72 to close at S$14.88
General Motors, but its plans plan as illegal. the court makes a final deci- creation of a new company But the company vehe- after the bank’s first quarter to March
have met fierce resistance. Gonzalez told a packed sion on May 27. tied to Fiat. mently denied the report net profit beat market expectations.
While Chrysler lenders federal courtroom the plan The dates were extended In Europe, unions voiced from German daily Frank- Singapore Airlines gained 64 cents
object to a US government- was “a fair and ordinary by about a week in response fears that Fiat head Sergio furter Allgemeine Zeitung. to S$12.34 and Singapore Telecom
back restructuring plan for process,” stressing the “ur- to court arguments from the Marchionne would close – AFP rose 18 cents to S$2.75. – AFP