theSun | FRIDAY MAY 29 2009 15

business KLCI
STI
1,041.24
2,292.97
6.44
13.11
Nikkei
TSEC
9,451.39
6,890.44
12.62
207.33
Hang Seng CLOSED KOSPI 1,392.17 45.40
SCI 2,632.93 44.35 S&P/ASX200 3,757.70 39.90

MAHB expects to be profitable this year

SEPANG: Malaysia Airports
Holdings Bhd (MAHB) hopes
to be profitable this year amid
projection of 0% growth in pas-
senger volume.
MAHB, which operates 39
airports, recorded 5.01% growth
in total passenger volume for
financial year ended Dec 31,
2008 to 47.45 million.
Its chairman, Tan Sri Dr
Aris Othman, said for its budget
preparation this year, MAHB
selected two scenarios, the first
with 0% growth and the second,
-5%.
“Nevertheless, both scenarios
will see a fall in profitability. We
only have four months of actual
report.
“The data in terms of pas-
sengers indicate we are more
or less even. No decline, no
growth,” he told a media briefing
after the company’s annual and
extraordinary general meetings
yesterday.
Aris said it was considered
“very good” for MAHB although track for completion by the third
no growth was recorded in the quarter of 2011.
four-month period. He said 97 companies had
“If you look at neighbour- been pre-qualified for consulta-
ing airports, their experience tion jobs under 38 packages.
was worse than ours. But it is Bashir said most of the con-
too early as we only have four sultants were local companies.
months and we are still affected “So much interest. We don’t
by the influenza A (H1N1),” he want to rush in selection,” he
said. said.
Meanwhile, managing direc- He said MAHB may open the EXCHANGE RATES MAY 28, 2009
tor Datuk Seri Bashir Ahmad tender for construction jobs not
said phase one of the new later than two weeks from now. Foreign currency Bank sell Bank buy Bank buy
low-cost carrier terminal is on – Bernama TT/OD TT OD
1 US DOLLAR 3.5490 3.4940 3.4840

GM talks with Europe

1 AUSTRALIAN DOLLAR 2.8020 2.6880 2.6720
1 BRUNEI DOLLAR 2.4470 2.3940 2.3860
1 CANADIAN DOLLAR 3.1780 3.1080 3.0960
briefs 1 EURO
1 NEW ZEALAND DOLLAR
4.9240
2.2160
4.8190
2.1240
4.7990
2.1080
1 PAPUA N GUINEA KINA 1.4010 1.2090 1.1930

break down in anger

1 SINGAPORE DOLLAR 2.4465 2.3940 2.3860
Singapore defends 1 STERLING POUND 5.6830 5.5610 5.5410
Temasek losses in BoA 1 SWISS FRANC 3.2580 3.1870 3.1720
SINGAPORE: Temasek Holdings made 100 ARAB EMIRATES DIRHAM 98.4000 93.3600 93.1600
a net gain of S$56 billion (RM134.4 bil- 100 BANGLADESH TAKA 5.5200 5.2000 5.0000
lion) over five years, the government 100 CHINESE RENMINBI N/A N/A N/A
said yesterday as it defended the state BERLIN: Talks over the sale of General Motors’ (RM7.35 billion).
100 DANISH KRONE 68.1200 62.7800 62.5800
investment firm’s loss-making sale of its European operations acrimoniously collapsed This model was given a boost on Wednes-
stake in Bank of America. yesterday throwing up a new obstacle to the day by Opel’s announcement that GM had 100 HONGKONG DOLLAR 46.6000 44.2500 44.0500
Finance Minister Tharman Shanmu- US auto giant’s efforts to avoid bankruptcy. transferred control of GM’s European factories 100 INDIAN RUPEE 7.7300 7.1200 6.9200
garatnam said any view of Temasek’s A New York court was also to hold new and patents to Opel, allowing the firm still to 100 INDONESIAN RUPIAH 0.0359 0.0310 0.0260
track record as an investor should not hearings yesterday on Chrysler’s bankruptcy operate in the event of bankruptcy. 100 JAPANESE YEN 3.7190 3.6400 3.6300
be based on any individual transaction application to lay on a rescue operation by Fiat But while Germany is fighting for 25,000 100 NEW TAIWAN DOLLAR N/A N/A N/A
but on how it had performed over the of Italy as the world auto industry remained Opel jobs at stake, it also faces pressure from
100 NORWEGIAN KRONE 56.9100 52.4200 52.2200
years. deep in torment. Britain and Belgium not to make a deal that
“Temasek is a long-term investor... The German government angrily accused protects German workers at the expense of 100 PAKISTAN RUPEE 4.5400 4.2000 4.0000
but being a long-term investor does not GM of using “scandalous” negotiating tactics factories in other countries. 100 PHILIPPINE PESO 7.6900 7.2200 7.0200
mean being locked into every individual during all night talks on the sale of European GM employs 55,000 people Europe-wide, 100 QATAR RIYAL 99.1500 94.3200 94.1200
investment, regardless of major changes affiliates Opel and Vauxhall. including around 7,000 in Spain, 4,700 in 100 SAUDI RIYAL 96.2500 91.5600 91.3600
in the environment or a new investment Fiat and Canadian auto parts maker Magna Britain at Vauxhall, 4,000 in Sweden at Saab, 100 SOUTH AFRICAN RAND 44.5600 41.0500 40.8500
proposition,” he told parliament. International remained in the race for Opel 3,600 in Poland, 2,600 in Belgium and 1,800
100 SRI LANKA RUPEE 3.1900 2.9400 2.7400
“This means that Temasek may divest after a third bidder, investment firm RHJ in Italy.
an investment, even at a loss, to get a International pulled out. Beijing Automotive GM faces a June 1 deadline to give the US 100 SWEDISH KRONA 47.7100 43.4800 43.2800
better mix of risks for its overall portfolio Industry Holding of China has also made a government a viable rescheduling plan, which 100 THAI BAHT 11.0600 9.4000 9.0000
or to position itself to take advantage of late bid. Germany has offered billions of euros includes the future of Opel, Vauxhall and Saab, Source: Malayan Banking Bhd/Bernama
opportunities elsewhere.” in soft loans to whoever takes over Opel. Ger- in return for government funding.
Industry estimates put Temasek’s man officials blamed the talks breakdown on Bankruptcy loomed larger after holders of
losses at US$4.6 billion (RM16 billion) a last-minute request from GM for an extra US$27 billion (RM94.5 billion) of GM bonds KL market summary
after it sold its entire 3.8% stake in Bank 300 million euros (RM1.5 billion) of funds for this week rejected a plan to swap a large por- MAY 28, 2009
of America for US$1.3 billion. – AFP Opel. tion of the debt for equity in the firm. INDICES CHANGE
German Finance Minister Peer Steinbrueck Chrysler faces its own battle as it faces an
said: “We were unpleasantly surprised when army of objectors to its rescue plan in a New FBMEMAS 6,953.87 - 58.45
German unemployment this new demand came out of the blue at 8pm York court. COMPOSITE 1,041.24 -6.44
rate falls to 8.2% local time. We found that pretty scandalous.” Judge Arthur Gonzalez, at the US Bank-
INDUSTRIAL
CONSUMER PROD
2,287.46
308.22
+6.69
-0.77
FRANKFURT: Germany’s unemploy- Economy Minister Karl-Theodor zu Gut- ruptcy Court in New York, was widely INDUSTRIAL PROD 81.60 -0.11
ment rate fell to 8.2% in May from tenberg criticised the US government saying expected to overrule hundreds of objections CONSTRUCTION 204.57 -1.97
8.6% the previous month, unadjusted it “could have made more of an effort” with its to the Chrysler rescue plan and approve the TRADING SERVICES 139.59 -0.74
figures released yesterday by the choice of representative at the discussions. bankruptcy. FINANCE 8,093.66 -68.98
“We have made a fresh request to the US PROPERTIES 692.39 -9.98
national labour agency showed. However, after 10 hours of arguments on
PLANTATIONS 5,332.09 -68.00
The improvement was in large Treasury and we expect a response before Fri- Wednesday, Gonzalez said there were more
part the result of a change in the day,” he said, calling its input so far “marginal, witnesses to be heard yesterday and possibly Energise MINING
FBMSHA
287.75
7,254.98
-12.16
-66.12
way unemployment is calculated to put it politely.” even today before he could rule. your FBM2BRD 4,547.26 -22.45
however, and one analyst warned Steinbrueck also said he did not want If Gonzalez approves the bankruptcy, a life TECHNOLOGY 14.44 -0.16
that the jobless rate in Europe’s big- German government money to go “outside new-look Chrysler could emerge within days,
gest economy would worsen further Europe’s borders.” according to President Barack Obama’s ad- pg 22 TURNOVER VALUE
in coming months. A new round of talks is scheduled for today ministration, which is spearheading the plan 1.076bil RM1.029bil
The number of unemployed in Ger- as Berlin races against time to find a saviour and providing emergency funding.
many rose on a seasonally adjusted for Opel ahead of GM’s likely bankruptcy on If not, Chrysler faces an uncertain future,
basis meanwhile by a meagre 1,000 June 1. Declaring Opel insolvent is also still with a worst-case scenario being Fiat aban-
in May from April, the agency said.
In April, the number of jobless
an option.
Officials at Wednesday night’s talks also
doning the tie-up and the US automaker going
into liquidation.
Shares end
had jumped by 58,000 as Germany’s
worst recession since World War II
discussed putting Opel in a trust to keep it
operating with a temporary “bridging loan”
Opponents to the sale of Chrysler to a group
led by Fiat include creditors and many of the
broadly lower
slammed the labour market. – AFP from the government worth some €1.5 billion US car dealerships who face closure. – AFP SHARE prices on Bursa Malaysia ended
broadly lower yesterday with losses reg-
istered in mostly heavyweight stocks, as
the market was dampened by a sluggish

Opec set to keep output unchanged economic outlook, a dealer said.

VIENNA: Opec was set yesterday to
keep its output unchanged at a meet-
ing in Vienna, with hopes of recovering
demand for crude and higher prices
convincing members to maintain the
status quo.
The 12-member oil exporter group
believes the market is oversupplied,
as shown by the high stock levels, but
it seems satisfied with prices after a
rally in the last two weeks that has
taken crude above US$60 (RM210) a
barrel.
On the eve of the meeting, Qatar
and Libya backed calls by Saudi Arabia,
the most influential power in the car-
tel, to keep the group’s output target
steady at 24.84 million barrels a day.
“They won’t cut,” Qatari Energy
Minister Abdullah bin Hamad al-Attiyah
said as he arrived in Vienna.
But he warned about unfounded
optimism sparked by recent higher
prices, underlining that demand for oil
was weak as major economies remain
mired in recession.
“The price of oil now is functional,
but not related to demand and supply.
We should not be too optimistic,” he
said.
The Organisation of Petroleum Ex-
porting Countries, which pumps 40%
of world oil, cut its production target
three times late last year to stabilise
prices that tumbled from record highs
above US$147 (RM515) per barrel
in July 2008 to US$32.40 (RM114) in
December.
The group seeks to influence prices
by setting itself an output quota, with
members given individual production
targets that are reviewed at regular
meetings.
On Wednesday, Saudi Oil Minister Ali
al-Nuaimi pointed to signs of increased
demand in Asia and the United States
and implied that a global economic
recovery would help absorb current
overproduction.
Algeria’s energy minister Chakib
Khelil has said there is a consensus
for no change in output policy by
Opec and even hardline Iran, whose
oil minister usually pushes for cuts,
conceded that the group’s production
target would remain the same.
Crude prices spiked to a six-
month high above US$63 (RM221) on
Wednesday, before falling back slightly
yesterday, but they remain below the
US$75 (RM263) that Opec members
say they want in the longer term.
Economists warn however that
higher prices now could delay an eco-
nomic recovery and Opec members
must balance their desire for increased
revenues against the impact expensive
energy has on global demand.
Libya’s Opec chief warned as he
arrived for the meeting that the oil
exporter group should be careful not
to burden the recession-hit world
economy with high energy prices.
“We think they (prices) are low, but
they will improve. But ... we should not
make it more difficult for the world
economy,” said the head of Libya’s Na-
tional Oil Company, Shukri Ghanem.
Venezuelan Energy Minister Rafael
Ramirez, a fellow price hawk like Iran,
has not called for a reduction in Opec’s
output target but wants members to
respect their quotas and cut back
their overproduction. – AFP
At close, the benchmark KLCI shed
6.44 points to 1,041.24, after opening
4.57 point points lower at 1,043.11.
The KLCI touched an intraday low of
1,037.09, down 10.59 points.
Prime Minister Datuk Seri Najib Abdul
Razak said yesterday that the country’s
economy will contract by between -4.0
and -5.0% this year.
The Plantation Index fell 68.0 points
to 5,332.09, the Industrial Index perked
6.69 points to 2,287.46, the Finance
Index slipped 68.98 points to 8,093.66.
The FBM30 Index shed 44.92 points
to 6,648.37, the FBMMesdaq Index
dropped 20.34 points to 4,051.71 and
the FBM2BRD Index shed 22.45 points
to 4,547.26. Decliners outnumbered
advancers by 473 to 168 counters,
while 192 counters were unchanged,
405 untraded and 36 others suspended.
– Bernama