16 theSun | FRIDAY JUNE 12 2009

KLCI 1,088.96  5.99

S Nikkei 9,981.33 T
10.16
business STI 2,381.61  9.61
T TSEC 6,567.37 105.10
S
Hang Seng 18,791.03  5.37
S KOSPI 1,419.39  4.51
S
SCI 2,797.32 T
18.93 S&P/ASX200 4,047.20 T
22.80

Govt hopeful economy

back on track next year
by Husna Yusop
newsdesk@thesundaily.com
PUTRAJAYA: The government
is hopeful the economy will
be back on track with reason-
able growth next year, Prime
Minister Datuk Seri Najib Abdul
Razak said yesterday.
He said the RM67 billion
worth of stimulus packages,
expected to give 1% to 2% ad-
ditional growth, would provide
full impetus for the economy in
the second half of the year.
“The third quarter of this year
will see a marginally negative
growth but the fourth quarter
will see positive growth,” Najib,
who is also the finance minister,
said in his opening remark at
the 2010 budget consultation
meeting at the Treasury here.
He said all the government
policies would be consistent,
with no “U-turns or flip-flops”,
as they are meant to spur
growth and instil greater con-
fidence among investors for
an improved inflow of Foreign
Direct Investment (FDI).
Najib also revealed that a
major announcement pertain-
ing to greater liberalisation
would be made at the 2009
Invest Malaysia soon.
“We are tackling the short-
term challenges. It is important
for us to chart a new direction
for the country with a new eco-
nomic model developed by the
government,” he said.
On assistance to bumiputras,
he said it would be targeted at
those deserving it as helping
them in the wrong way may not
be sustainable.
“We want to make them
more resilient and competitive.
To rely on a quota is something
that is unrealistic. We have to
identify good bumiputra com-
panies rather than to rely on
quota.”
He also said the government
will have to ensure bumiputra
companies were not eliminated
in the process of greater
liberalisation which comes with
greater competitions.
On the size of next year’s
budget, he said the government
was currently looking at its rev-
market summary
BERNAMAPIX
Najib chairs the 2010 budget
consultation meeting at the
Treasury. With him is Second
Finance Minister Datuk Ahmad
Husni Mohamad Hanadzlah.
enue forecast and expenditure.
“We need to fine-tune that.
I would not want to commit to
the figure at this stage as I want
to be as precise as possible,” he
said, when asked if the size of
the budget would be RM200
billion as indicated earlier.
JUNE 11, 2009
Prices close high
on active buying
SHARE prices on Bursa Malaysia closed higher
yesterday on buying momentum in selective blue-
chips especially with property and finance-related
stocks providing support, dealers said.
The KLCI hit a nine-month high of 1,088.96, up by
5.99 points or 0.55%, after opening 1.16 points higher
at 1,084.13. It touched an intra-day high of 1089.17,
the highest since Sept 4 last year.
“There is some healthy rotation going in the mar-
ket and also tremendous liquidity which is providing
positive sentiments,” a dealer said.
He said the KLCI is expected to continue extending
its upwards momentum and likely to hit 1,100 level
today.
The Plan-
INDICES CHANGE
tation Index
i n c r e a s e d FBMEMAS 7,336.20 +51.36
20.74 points COMPOSITE 1,088.96 +5.99
to 5,507.89, INDUSTRIAL 2,374.32 +13.40
the Industrial CONSUMER PROD 322.21 +3.12
INDUSTRIAL PROD 88.38 +0.95

OZ Minerals snaps up improved Chinese offer Index rose CONSTRUCTION

SYDNEY: Australia’s OZ
Minerals overwhelmingly
backed an improved US$1.396
billion (RM4.858 billion) from
China’s Minmetals yesterday,
just days after mining giant
Rio Tinto walked away from a
separate Chinese deal.
Minmetals’ last-minute deci-
sion to sweeten its offer with an
extra US$180 million (RM626
million) proved decisive in
winning over OZ Minerals
shareholders, securing 92% of
votes at the company’s annual
general meeting.
The improved offer helped
Minmetals see off two rival bids
for the miner, ensuring it succeed-
ed where another state-owned
Chinese firm, Chinalco, failed last
week when Rio snubbed its offer
of a huge cash injection.
Chinalco had refused to revise
its US$19.5 billion (RM68.25 bil-
lion) offer despite recent rises in
commodity prices, leading Rio to
opt for a rights issue and a joint
venture with former rival BHP
Billiton instead.
The OZ deal finalises a
courtship that began in Febru-
ary, when Minmetals offered
A$2.6 billion (RM7.35 billion)
for a complete takeover of the
debt-laden miner.
Canberra rejected that bid on
national security grounds be-
cause it included OZ’s flagship
Prominent Hill gold and copper
mine, which is located near a
military rocket testing range in
South Australia.
But it gave the green light to
a second offer from Minmetals
to buy all of Oz’s assets barring
Prominent Hill, which was the
deal ultimately passed by share-
holders yesterday.
Chairman Barry Cusack
said before the vote that the
Minmetals offer “will deliver
considerable additional value
to shareholders.”
He also warned shareholders
against alternative refinancing
proposals put forward over the
past week, saying the Chinese
deal offered certainty.
“There is a material risk that
OZ Minerals may not be suc-
cessful in refinancing its debt,
which could potentially lead to
it being unable to continue as a
going concern,” Cusack said of
the alternative proposals.
The OZ deal may help patch
up relations between Australia
and China that were left frayed
13.4 points to TRADING SERVICES
2,374.32 and FINANCE
213.40 +1.80
145.88 -0.49
8,589.42 +110.91
by Rio’s abrupt decision to the Finance PROPERTIES 773.84 +17.81
walk away from Chinalco, once Index rose PLANTATIONS 5,507.89 +20.74
hailed as the Anglo-Australian 110.91 points MINING 314.10 UNCH
to 8,589.42. FBMSHA 7,615.83 +44.66
mining giant’s white knight.
Beijing’s move to shore up its G a i n e r s FBM2BRD 4,914.74 +76.56
TECHNOLOGY 15.53 +0.02
commodity supplies by buying outnumbered
into Australian resources firms losers by 441 TURNOVER VALUE
hit by the global downturn had to 280, while 2.162bil RM1,996bil
caused intense debate in Aus- 237 counters
tralia. were un-
China faced a bruising cam- changed, 273 untraded and 37 others suspended.
paign from Australian rights Volume declined to 2.162 billion shares worth
activists and some politicians RM1.996 billion from Wednesday’s 2.21 billion shares
that used evocative images such valued at RM1.829 billion.
as the Tiananmen crackdown Among the active counters, SAAG Consolidated
to oppose selling strategic increased five sen to 37 sen, KNM Group eased one
resource assets to a “brutal sen to RM1.04, Scomi Group rose two sen to 79 sen
military regime.” and Perisai Petroleum gained six sen to 70 sen.
In an editorial this week, As for the heavyweights, Sime Darby closed
Beijing’s state news agency unchanged at RM7.05, Maybank rose five sen to
Xinhua blamed the deal’s col- RM5.70, Tenaga was flat at RM7.90 and Telekom
lapse on anti-China sentiment declined three sen to RM2.68. – Bernama
in Australia. – AFP

EXCHANGE RATES JUNE 11, 2009

IEA: Oil may be Foreign currency Bank sell Bank buy Bank buy
hinting recession TT/OD TT OD
1 US DOLLAR 3.5420 3.4770 3.4670
is receding 1 AUSTRALIAN DOLLAR 2.8830 2.7560 2.7400
PARIS: Oil may be signalling that the 1 BRUNEI DOLLAR 2.4480 2.3840 2.3760
global recession is on the turn, the 1 CANADIAN DOLLAR 3.2060 3.1280 3.1160
International Energy Agency (IEA) 1 EURO 4.9650 4.8450 4.8250
said yesterday, raising its estimate
1 NEW ZEALAND DOLLAR 2.2720 2.1720 2.1560
for overall demand for the first time
for many months. 1 PAPUA N GUINEA KINA 1.4270 1.1930 1.1770
The data suggested that this slight 1 SINGAPORE DOLLAR 2.4475 2.3840 2.3760
upwards boost came from leading 1 STERLING POUND 5.8070 5.6660 5.6460
industrialised economies, and par- 1 SWISS FRANC 3.2850 3.2050 3.1900
ticularly from activity in the United 100 ARAB EMIRATES DIRHAM 98.2100 92.9200 92.7200
States.
100 BANGLADESH TAKA 5.5200 5.2000 5.0000
A recent US$20 (RM70) surge in
the oil price and unexpectedly strong 100 CHINESE RENMINBI N/A N/A N/A
US consumption were among signals 100 DANISH KRONE 68.6800 63.0700 62.8700
that the recession may be receding, 100 HONGKONG DOLLAR 46.5100 44.0500 43.8500
the IEA said in its June report. 100 INDIAN RUPEE 7.7700 7.1400 6.9400
Some of the price rise was driven 100 INDONESIAN RUPIAH 0.0368 0.0320 0.0270
by investors on futures markets
100 JAPANESE YEN 3.6190 3.5310 3.5210
anticipating trends on stock and
money markets, and the price surge 100 NEW TAIWAN DOLLAR N/A N/A N/A
appeared “difficult to justify from 100 NORWEGIAN KRONE 57.4000 52.4900 52.2900
fundamental factors alone,” the IEA 100 PAKISTAN RUPEE 4.5300 4.2300 4.0300
warned. 100 PHILIPPINE PESO 7.6100 7.1600 6.9600
US crude rose 88 cents (RM3.08) 100 QATAR RIYAL 98.8300 94.0100 93.8100
to US$72.21 (RM252.73) a barrel by
100 SAUDI RIYAL 95.9200 91.2400 91.0400
0905GMT (5.05pm in Malaysia) yes-
terday, a near eight-month high. 100 SOUTH AFRICAN RAND 45.3700 41.7400 41.5400
Brent crude gained 70 cents to 100 SRI LANKA RUPEE 3.1900 2.9200 2.7200
US$71.50 (RM250.25). 100 SWEDISH KRONA 47.6300 43.2400 43.0400
Falling inventories in top oil con- 100 THAI BAHT 11.1400 9.4400 9.0400
sumer the US also supported prices. Source: Malayan Banking Berhad/Bernama
– AFP