14 theSun | MONDAY JUNE 1 2009

business

KL market summary
MAY 29, 2009

KL shares expected to trade higher this week INDICES

FBMEMAS
CHANGE
6984.21 +30.34
SHARE on Bursa Malaysia are Pong said news of Japan’s indus- On Wednesday, the central bank KLCI closed the week at 1,044.11, COMPOSITE 1044.11 +2.87
expected to trade higher this week trial production rising 5.2% in April had announced that Malaysia’s first down 1.15 points from the previous INDUSTRIAL 2322.10 +34.64
as there is still ample of liquidity in and India’s economic expansion quarter Gross Domesic Product week’s closing of 1,045.26. CONSUMER PROD 305.29 -2.93
the market coupled with positive at a faster-than-expected pace of contracted by 6.2% from a growth of The Finance Index shed 144.26 INDUSTRIAL PROD 82.52 +0.92
sentiments arising from the region. 5.8% in the quarter ended March 31, 0.1% in the fourth quarter last year. points to 8,004.49 but the Indus- CONSTRUCTION 200.22 -4.35
TRAD/SERV 141.85 +2.26
“The market could climb further helped to stabilise sentiments in the Prime Minister Datuk Seri Najib trial Index gained 20.84 points to FINANCE 8004.49 -89.17
as when compared with last week region. Abdul Razak announced on Thursday 2,322.10 and the Plantation Index PROPERTIES 695.80 +3.41
the index hardly changed,” said “The news actually spurred the that the economy will contract by fell 162.64 points to 5,295.77 and the PLANTATION 5295.77 -36.32
Jupiter Securities head of research market on Friday and we expect a between -4 and -5% this year but it is FMBEmas was 13.89 points higher MINING 281.68 -6.07
Pong Teng Siew. spill-over effect from it next week,” expected to do better in the second at 6,984.21. FBMSHA 7340.85 +85.87
He said investors have started to said another analyst. half of the year. The FBM2BRD advanced 47.89 FBM2BRD 4574.77 +27.51
TECHNOLOGY 14.52 +0.08
set aside news of economic contrac- Hence, Pong expects the local During the week, the KLCI hit a new points to 4,575.77 and the FBM30
tion in Malaysia and looked for leads market to continue to attempt the high of 1,053.14 on May 25, but trimmed went down 20.21 points to 6,677.27 TURNOVER VALUE
on improvements, especially within resistance level of 1,070 points with most of the gains the next day. while the FBMMDQ rose 541.77 1.770bil RM2.362bil
the region. support at 1,010 points this week. On a Friday-to-Friday basis, the points to 4,039.69. – Bernama

‘Bilateral trade with

BNM and BOT to bolster
M’sian-Thai trade integration
KUALA LUMPUR: Bank Negara
Malaysia and the Bank of Thailand
(BOT) will pursue avenues to fur-
ther bolster bilateral initiatives in
the financial system to reinforce the
high degree of economic and trade
integration between Malaysia and
Thailand.
The central banks of both
countries would also endeavour to
explore and pursue new avenues
of cooperation and to broaden the
activities of financial institutions in
their respective economy.
This was agreed to when senior
officials of Bank Negara and BOT
met in Bangkok on Saturday as
part of their regular dialogues and
exchange of views on current is-
sues facing the domestic, regional
and international economy and
financial system.
The bilateral meeting was at-
tended by Bank Negara Governor
Tan Sri Dr Zeti Akhtar Aziz and BOT
governor Dr Tarisa Watanagase.
EchoPark plans overseas expansion
MIRI: Malaysia’s very own hip-hop
wear franchiser, EchoPark, plans
to expand its business with outlets
in Singapore and Thailand within
this year.
EchoPark managing director
Alex Yong told Bernama on Saturday
that the company, established six
years ago under the then Entrepre-
neur and Cooperative Development
Ministry’s franchising development
In a joint statement yesterday,
Bank Negara and BOT said the
meeting also shared a concern
that the approach being adopted
by international rating agencies to
give importance to the capacity of
governments to provide assistance
to financial institutions.
They said that this could send
a wrong signal to the market and
induce incentives for greater risk
taking by financial institutions.
The meeting reviewed recent
economic and monetary develop-
ments in Malaysia and Thailand,
and discussed the issues as well as
implications of the global financial
crisis on their respective economies
and financial systems.
Both central banks shared
their experiences on their policy
responses to deal with the spill-
over effects of the global financial
crisis and the sharp contraction in
economic activities in the major
advanced economies.
programme, had successfully set
up its first outlet in Damman, Saudi
Arabia in December last year.
A member of the Malaysian
Retailer Chains Association and
Branding Association Malaysia, he
said EchoPark built up as a special-
ised hip-hop wear centre had al-
ready set up 13 outlets throughout
Malaysia, with its outlet at Bintang
Megamall here being its latest and
The officials noted that the
financial system in both Malaysia
and Thailand is strong and resilient
and that financing to the economy
has been flowing adequately.
The central banks also discussed
avenues to further strengthen
bilateral initiatives in the financial
system to reinforce the high degree
of economic and trade integration
of both Malaysia and Thailand.
The governors agreed to ex-
plore and pursue new avenues of
cooperation and to broaden the
activities of financial institutions in
their respective economy.
The meeting also reinforced the
view that a strong balance sheet with
adequate capital buffers, sound risk
management and good governance
process in financial institutions are
critical to the building of a resilient
and well functioning financial sector.
This in fact has been achieved in
the financial system of both coun-
tries, the statement said. – Bernama
first in Sarawak.
He said the setting up of their
outlet here would be a strategic
move particularly to tap the market
from nearby Brunei Darussalam,
which had a strong market for hip-
hop fashion wear.
Yong said the company is also
planning to set up another outlet
in Kuching sometime this year.
– Bernama
India continues to grow
despite economic crisis’
KUALA LUMPUR: The
current economic crisis has
not dampened bilateral trade
between Malaysia and India
and the two nations expect an
increase in trade growth in
comparison to last year.
Domestic Trade and Con-
sumer Affairs Minister Datuk
Seri Ismail Sabri Yaakob told a
press conference on Saturday
that in the first half of the year,
trade between the two coun-
tries stood at RM5.2 billion
compared with RM8.1 billion
seen the whole of last year.
Devils “Even through the eco-
learn nomic crisis, we can expect
lessons an increase in bilateral trade
between Malaysia and India.
the We can probably achieve a
hard way total of RM10 billion to RM11
pg 28 billion in bilateral trade.
“A recently concluded joint
study has indicated that the
two countries could catapult
bilateral trade to 16 billion
ringgit by 2012,” explained
Ismail after launching the
Seventh Global Indian Festi-
val 2009 (formerly known as
the Global Indian Shopping
Festival) here on Saturday.
“The implementation of
the trade in goods agreement
under the Asean-India FTA in
early 2009 would help boost
trade. Indian businesses will
be able to use Malaysia as a
base for entry into the Asean
Market,” he said.
Malaysia is geo-strategi-
cally located in South East
Asia and is in an advantageous
position as the gateway for
Indian companies to penetrate
other markets in the region,
Ismail further clarified.
Other areas of possible
bilateral cooperation between
the two nations include a col-
laboration with Indian insti-
tutions of higher learning for
joint-research and research
centres.
“Malaysia and India have
identified petroleum and gas;
processed food; animal feed;
petrochemical; oleo chemicals
and medicine as potential
sectors for intra industry (co-
operation).
“Trade and healthcare;
education; IT and telecommu-
nications; financial; tourism;
architectural; construction
and engineering; distribution
and human resource develop-
ment are other key areas for
collaboration between India
and Malaysia,” said Ismail.
Touching on the consumer
portal Price Watch, Ismail ad-
mitted that in the beginning
the portal experienced too
much traffic and is undergo-
ing an upgrade to ensure
better service.
“Consumers will be able to
compare prices of goods sold.
This will help standardise the
prices of goods sold in Penin-
sular Malaysia, Sabah and
Sarawak,” Ismail said.
Indian High Commissioner
to Malaysia Ashok K. Kantha,
who attended the function,
said the new Indian cabinet
looked forward to reinforc-
ing ties with South East Asia
and has placed an emphasis
on economic recovery and
greater India-Malaysia trade.
– Bernama

10th Malaysia Plan to be based on new economic model

BUTTERWORTH: The 10th
Malaysia Plan (10MP) will
be based on a new economic
model to ensure that all efforts
towards economic recovery in
the country run smoothly.
Minister in the Prime Min-
ister’s Department Tan Sri
Nor Mohamed Yakcop (pix)
said that although 10MP will
take effect only in 2011, the
government has started early
planning on the five-year eco-
nomic programme to ensure a
sustainable development.
The MP for Tasek Gelugor
said that among the areas of
focus under the new model
will be to create many more
industries to generate higher
income for the people and help the cabinet’s approval so that industries such as manu- including the financial sec- skills and knowledge of the
them face future economic it can be implemented ear- facturing will be continued tor has started to take effect, new economy will be crucial
challenges as well. lier, and when the world with new impetus through he said, adding that he was for workers so that they can
Speaking to re- economy makes a knowledge based industries confident that the country’s compete and generate higher
porters following a recovery, we would so that they are able to gener- economy will start to recover income as well, he said.
meeting with the be at the right plat- ate higher income. in the second part of the year. “Although we know the
people from his form for recovery,” “We see this current “The negative growth response towards the retrain-
parliamentary he said. economic downturn as a projection will not jeopordise ing schemes and programmes
constituency, he Nor Mohamed “blessing” to push the coun- the plans of 9MP as each for workers has not been as
said that besides said that among try towards a new economic programme has already been good, the people must realise
aiming for high the sectors identi- direction capable of more given the special allocation,” that new skills are required to
income, attention fied to drive the progress and that all the he said. face the challenges of the new
would also be paid new economy stimulus packages given by Nevertheless, Nor Mo- economy.
to utilising lower were knowledge, the government so far have hamed said in order to make a “A crisis is not always a
production costs. skills and creativ- started to show results,” he success of a modern economy, bad thing as it also gives us
“The gov- ity based industries said. the people, especially those the opportunity and space to
ernment has including tourism. Although there has been retrenched should take up reassess the existing strategies
already started However, a contraction in economic the opportunity of training to continue to progress in line
drafting the the tra- growth, the plan to liberalise provided by the government. with current changes,” he
10MP and has ditional the 27 economic sectors Increasing the level of said. – Bernama