14 theSun | THURSDAY SEPTEMBER 3 2009

business KLCI
STI
1,168.01
2,569.93
3.27
26.49
Nikkei
TSEC
10,280.46
7,039.77
249.60
20.02
Hang Seng 19,522.00 350.30 KOSPI 1,613.16 9.90
SCI 2,714.97 31.25 S&P/ASX200 4,438.20 76.40

market summary SEPTEMBER 2, 2009

INDICES
CONSTRUCTION
CHANGE
225.03 -0.09
CI down in tandem with regional markets
CONSUMER 358.33 +1.65 SHARE prices on Bursa Malaysia ended lower British American Tobacco which rose 80 sen
FBMACE 4,065.40 -23.89 for the second consecutive day along with other to RM45.80, Tien Wah Press which jumped 30
FBMEMAS 7,865.98 -22.64 major regional markets, with major index linked sen to RM2.29 and UBG which gained 28 sen to
FBM-KLCI 1,168.01 -3.27 counters in the red. The FBM KLCI declined 3.27 RM2.78 while Tanjong Public increased 26 sen
FBMSHA 8,123.94 -20.99 points to 1,168.01. to RM15.70.
FINANCE 9,424.81 -8.46 Sentiment was dampened by overnight losses Among the actives, KNM slipped 2.5 sen to
INDUSTRIAL PROD 88.33 -0.47
INDUSTRIAL 2,584.12 -2.51
on Wall Street over renewed fears on the health of 73.5 sen, Multi Sports shed four sen to 51 sen,
the banking and financial sector, the dealer said. Compugates was flat at seven sen, YTL Power
MINING
PLANTATION
332.34
5,759.87
UNCH
-15.37 Losers outnumbered gainers by 421 to 181 shed two sen to RM1.29 and TAS Offshore lost EXCHANGE RATES September 2, 2009
PROPERTIES 765.42 -5.02 while 239 counters were unchanged, 433 un- five sen to 75 sen.
TECNOLOGY 16.15 -0.23 traded and three others suspended. As for heavyweights Sime Darby slid six sen Foreign currency Bank sell Bank buy Bank buy
TRADING SERVICES 154.14 -0.84 Riverview led the losers. It shed 30 sen to to RM8.20, Maybank shed three sen to RM6.40, TT/OD TT OD
TURNOVER VALUE RM2.15, while LKT Industrial shed 25 sen to Bumiputra-Commerce added two sen to RM10.24, 1 US DOLLAR 3.5790 3.5140 3.5040
RM1.75 and Dutch Lady fell 20 sen to RM11.30. Tenaga Nasional was flat at RM8.03 and IOI Corp 1 AUSTRALIAN DOLLAR 2.9890 2.8580 2.8420
522.269mil RM905.813mil
The counters that bucked the trend were perked one sen to RM5.05. – Bernama
1 BRUNEI DOLLAR 2.4830 2.4220 2.4140
1 CANADIAN DOLLAR 3.2510 3.1720 3.1600
1 EURO 5.0960 4.9730 4.9530

Allow financial institutions 1 NEW ZEALAND DOLLAR

1 PAPUA N GUINEA KINA
1 SINGAPORE DOLLAR
1 STERLING POUND
1 SWISS FRANC
2.4440
1.4480
2.4825
5.7870
3.3630
2.3370
1.2080
2.4220
5.6460
3.2820
2.3210
1.1920
2.4140
5.6260
3.2670

to fail, says British economist

KUALA LUMPUR: Financial institutions
should be allowed to fail without causing
damage to other financial institutions, said
British economist Tim Harford.
He said, “ In this crisis, we have propped
up banks and insurance companies with
failed strategies, because we couldn’t let
them collapse. We must figure out a better
bankruptcy regime to allow such banks to
fail in future,” he said in an e-mail reply
to Bernama.
The economist, an author of two
economic books and a member of the
Financial Times editorial board, said the
market has always been a success because
bad ideas failed and good ones spread and
succeeded.
In a Financial Times article published
briefs
Yoong Onn gets SC nod to
list on Bursa
KUALA LUMPUR: Yoong Onn Corporation
Bhd has obtained approval from the Securi-
ties Commission to list on Bursa Malaysia.
“Our proposed listing on the Main
Market will certainly propel us to continue
charting our growth path,” said Yoong Onn
managing director Roland Chew Hon Foong
in a statement yesterday.
Founded in 1966, Yoong Onn is an
integrated designer, manufacturer and
distributor of home linen consisting of bed,
bath linen, bedding accessories, curtains
and homeware. – Bernama
Shell MDS to double wax
output with new plant
KUALA LUMPUR: Shell MDS (Malaysia)
Sdn Bhd is investing US$90 million
(about RM317.6 million) to build a new
wax facility at its gas-to-liquids (GTL)
plant in Bintulu, Sarawak.
“The wax plant expansion project is a
key development project for Shell MDS
as it will enable us to double our current
wax output,” said managing director Dick
Benschop in a statement yesterday.
“This expansion project further dem-
onstrates Shell’s continued commitment
to Shell MDS and Malaysia,” he said.
– Bernama
OSK Research sees Q2
results season as good
KUALA LUMPUR: OSK Research Sdn Bhd
views the second quarter results season as
being good. In its daily equity research note,
it said corporate earnings for the second
quarter were well balanced, with some 38%
reporting results within expectations.
There was also an equal percentage
in April, Harford said banks cannot raise
new money and lend it to people as their
assets become worthless and weighs down
on existing promises to repay depositors
and other creditors.
“They cannot raise fresh money be-
cause nobody wants to lend money to a
near-bankrupt bank.
“So far, governments have been trying
to raise, or at least, stabilise the value of
bank assets, but an alternative is to reduce
the burden of their liabilities,” he was
quoted as saying.
On stimulus packages introduced by
governments all over the world, Harford
said it was probably the right move but
would only help a little in cushioning the
impact of a deepening recession.
– 31% – of reported results that were above
and below expectations, the research house
said. “The second quarter results season
improved as expected over the first quarter,
with upgrades exceeding downgrades for the
first time, since the second quarter 2007,”
OSK Research said. – Bernama
Hong Leong Bank seeks to
acquire banks
KUALA LUMPUR: Hong Leong Bank Bhd
(HLBB) is seeking to acquire suitable
banks, as part of its regional expansion
plans, said RAM Ratings. In line with this,
the rating agency said HLBB bought a 20%
stake in China-based bank, Chengdu Co
Ltd (Chengdu Bank), in July last year.
In a research note yesterday, RAM Rat-
ings said Chengdu Bank made its maiden
profit contribution of RM99 million to the
group in FY2009. – Bernama
MIDF expects local market
to hold fort
KUALA LUMPUR: The FTSE Bursa Malaysia
Kuala Lumpur Composite Index is expected
to hold the fort despite the anticipated weak-
ness in the Wall Street, says MIDF Research.
The Dow Jones Industrial Average fell
185.7 points or 1.96% from 9496.3 to 9310.6
due to profit-taking on Tuesday.
The tone is set for the next few weeks for
depressed sentiment as the market discounts
the positive macro news, said MIDF.
However, regional equity market momen-
tum is not expected to be broken as liquidity
is still flowing into the market, said MIDF in its
research note. – Bernama
Asian automakers get over
half US auto sales
CHICAGO: Asian automakers gobbled up
more than half of US auto sales for the first
time in August as a government-funded
“Cash for Clunkers” programme spurred
demand for their fuel-efficient vehicles,
industry data showed yesterday.
Asian brands captured 52.3% of the US
market in August – a five-point jump from
100 ARAB EMIRATES DIRHAM 99.1800 93.9400 93.7400
100 BANGLADESH TAKA 5.3400 5.2100 5.0100
100 CHINESE RENMINBI N/A N/A N/A
100 DANISH KRONE 70.5100 64.7800 64.5800
100 HONGKONG DOLLAR 47.0000 44.5200 44.3200
100 INDIAN RUPEE 7.5700 6.9500 6.7500
Saying there were no easy solutions, 100 INDONESIAN RUPIAH 0.0370 0.0314 0.0264
he added, “We made big mistakes in bank 100 JAPANESE YEN 3.8710 3.7770 3.7670
regulations and the banks made big strategic 100 NEW TAIWAN DOLLAR N/A N/A N/A
mistakes. There is no painless solution”. 100 NORWEGIAN KRONE 60.5900 55.6300 55.4300
Harford reiterated he was not in favour 100 PAKISTAN RUPEE 4.4300 4.1200 3.9200
of stimulus packages for an ordinary
recession as the timing of such a move 100 PHILIPPINE PESO 7.5000 7.0300 6.8300
must be right. 100 QATAR RIYAL 99.8400 94.9700 94.7700
“By the time the government really 100 SAUDI RIYAL 96.9300 92.2100 92.0100
starts spending the money, the recession 100 SOUTH AFRICAN RAND 46.8600 43.1100 42.9100
will already be over,” he said. 100 SRI LANKA RUPEE 3.2400 2.9700 2.7700
Harford said even John Maynard 100 SWEDISH KRONA 50.9800 46.3200 46.1200
Keynes, a renowned economist often
associated with stimulus packages, had 100 THAI BAHT 11.2800 9.5600 9.1600
Source: Malayan Banking Berhad/Bernama
the same concern.
“In this case the recession is so deep
and dangerous that government stimulus
is probably the right thing to do,” he said.
Bank Islam
a year earlier – while the Detroit Three of
General Motors, Ford and Chrysler saw posts RM233m
their share slide 4.5 points to a record low
of 40.8%.
Hyundai, Ford, Toyota and Honda were
profit in FY2009
the big winners after posting double-digit KUALA LUMPUR: Bank Islam Malay-
gains while General Motors and Chrysler sia Bhd posted a profit before zakat and
continued to report sharp losses despite tax of RM233.1 million for its financial
the increased showroom traffic. – AFP year ended June 30, 2009, down by 24%
from RM308.3 million in the previous
Australian economy grows year.
The lower profit was due mainly to
0.6% in Q2 the high base effect given an exception-
MELBOURNE: Australia posted economic ally high one-off financing recovery of
growth of 0.6% in the June quarter, official RM127.95 million in the preceding year,
figures showed yesterday, confirming its the bank said in a statement yesterday.
status as the best performer in the developed Managing director Datuk Zukri Sa-
world during the global downturn. mat said the financial performance was
The better-than-expected figure means particularly encouraging as operating
the economy expanded 1% in the first six profit surged by 28% to RM359.2 million
months of 2009, building on 0.4% growth in from RM280.2 million a year ago on the
the March quarter. – AFP back of net financing growth of 6.6%
to RM9.7 billion and deposit growth of
Economists more upbeat 21.4% to RM25.2 billion.
about S’pore growth He said the bank achieved all the per-
formance targets and implemented all
SINGAPORE: Economists are more upbeat five pillars of the three-year programme
on Singapore’s growth prospects for this as scheduled under its turnaround plan
year and next as they upped their fore- that was launched in October 2006 to
casts for the city-state, a central bank return to profitability and build a solid
survey released yesterday showed. foundation.
The Monetary Authority of Singapore Choir on The bank’s total income during
poll of 21 economists last month showed show the financial year also rose by 10% to
they forecast the economy to contract 3.6% RM1.27 billion from RM1.15 billion,
this year, an improvement from the 6.5%
pg 20 with the non-fund based income ac-
projected in a previous survey. – AFP counting for 11% of total income.
This was a significant increase in
eBay hangs up on Skype contribution from just 8.1% recorded
in the financial year 2006, Bank Islam
WASHINGTON: eBay ended its troubled mar- said.
riage with Skype on Tuesday, agreeing to sell a The bank said its capital adequacy
majority stake to a group of investors in a deal
that values the Web communications service
levels were robust during the financial
at US$2.75 billion (RM9.625 billion).
year with the risk-weighted capital ratio
(RWCR) up at 13.6% and core capital
The online auction giant, which will retain ratio at 12.2%.
a 35% equity investment in Skype, said it To date, Bank Islam has received
will receive US$1.9 billion (RM6.65 billion) in RM324 million from BIMB Holdings
cash upon the completion of the sale and a Bhd and Lembaga Tabung Haji under
note from the purchasers for US$125 million the first tranche of the fresh capital
(RM437.5 million). eBay purchased Skype in injection exercise.
2005 for a price tag that eventually exceeded Post-overall capital injection, the
US$3.1 billion (RM10.85 billion). – AFP RWCR is projected to be strengthened
further to 18%. – Bernama