theSun | WEDNESDAY SEPTEMBER 9 2009 15

1,202.07 S
11.68 10,393.23 S
72.29
business KLCI
STI 2,660.91 S
16.96
Nikkei
TSEC 7,313.99 S
89.43
Hang Seng 21,069.81 440.50
S KOSPI 1,619.69 S
11.12
SCI 2,930.48 S
49.36 S&P/ASX200 4,523.80 S
69.40

market summary SEPTEMBER 8, 2009

INDICES
FBMEMAS
CHANGE
8,093.82 +67.27
Strong buying by funds pushes CI to 14-month high
FBM-KLCI 1,202.07 +11.68 SHARE prices on Bursa Malaysia three others were suspended. shareholders’ approval for its
INDUSTRIAL 2,650.74 +43.20 ended higher yesterday despite The market undertone proposed merger with Spice
CONSUMER PROD 365.72 +2.16 some profit-taking activities which remained positive with volume Communications Ltd, gained
INDUSTRIAL PROD 90.23 +0.16 emerged after recent gains. amounting to 790.899 million four sen to RM3.14.
CONSTRUCTION 231.30 +1.55 Strong fund buying of select- shares valued at RM1.398 bil- Kumpulan Jetson rose six sen
TRADING SERVICES 159.28 +1.25
FINANCE 9,692.36 +60.16
ed heavyweights also lifted the lion compared with Monday’s to RM1.34 while its ICULS perked
PROPERTIES 789.48 +5.60 key index to close at a 14-month 388.725 million shares worth eight sen to RM1.19 following
high, a dealer said. RM627.801 million. news that Naza brothers had
PLANTATION
MINING
5,925.23
318.15
+92.34
UNCH The FBM KLCI ended 1% or Topping the actives, KNM offered to increase its stake in EXCHANGE RATES September 8, 2009
FBMSHA 8,337.39 +88.84 11.68 points higher at 1,202.07, Group edged up half-a-sen to 74 the company to 43%.
FBMACE 4,122.55 -18.83 supported mostly by Sime Darby, sen, Genting Malaysia advanced The top gainer was Sime Foreign currency Bank sell Bank buy Bank buy
TECHNOLOGY 16.50 -0.01 Tanjong and IOI Corporation. three sen to RM2.92 while Darby which climbed 33 sen TT/OD TT OD
TURNOVER VALUE Advancers led decliners 393 Genting Singapore (C) gained to RM8.60 while Berjaya Land- 1 US DOLLAR 3.5480 3.4830 3.4730
to 277 while 254 counters were two sen to 41 sen. ICULS lost 22 sen to RM3.46. 1 AUSTRALIAN DOLLAR 3.0720 2.9380 2.9220
791,033mil RM1,398bil
unchanged, 353 untraded and Axiata Group, which received – Bernama
1 BRUNEI DOLLAR 2.4830 2.4230 2.4150
1 CANADIAN DOLLAR 3.3000 3.2190 3.2070
1 EURO 5.1000 4.9780 4.9580

Stiglitz warns of
1 NEW ZEALAND DOLLAR 2.4870 2.3780 2.3620
1 PAPUA N GUINEA KINA 1.4340 1.1990 1.1830
1 SINGAPORE DOLLAR 2.4825 2.4230 2.4150
1 STERLING POUND 5.8160 5.6740 5.6540
1 SWISS FRANC 3.3570 3.2750 3.2600
100 ARAB EMIRATES DIRHAM 98.3200 93.1200 92.9200

economic double dip

100 BANGLADESH TAKA 5.3400 5.2100 5.0100
100 CHINESE RENMINBI N/A N/A N/A
100 DANISH KRONE 70.5700 64.8400 64.6400
100 HONGKONG DOLLAR 46.5900 44.1300 43.9300
100 INDIAN RUPEE 7.5500 6.9400 6.7400
100 INDONESIAN RUPIAH 0.0368 0.0314 0.0264
REYKJAVIK: US economist Joseph Stiglitz, two-thirds of US economic growth.
100 JAPANESE YEN 3.8290 3.7350 3.7250
winner of the 2001 Nobel Prize in economics, An “inventory adjustment” is under way,
has warned that the global economy could as companies build up their stocks, Stiglitz 100 NEW TAIWAN DOLLAR N/A N/A N/A
suffer a double dip, a pronounced rebound said. 100 NORWEGIAN KRONE 61.1800 56.1800 55.9800
giving way to another slide. But “because of the uncertainties, people 100 PAKISTAN RUPEE 4.4000 4.0900 3.8900
“It is difficult to know whether or when are not hiring, unemployment is very high than had other countries, sparking resent- 100 PHILIPPINE PESO 7.4300 6.9600 6.7600
there will be a W,” as such a course of events is and foreclosures are likely to remain high,” ment, for example, in Thailand, an IMF 100 QATAR RIYAL 98.9500 94.1300 93.9300
often described, Stiglitz told AFP on Monday. he said. recipient in the late 1990s. 100 SAUDI RIYAL 96.0800 91.4000 91.2000
“There are a number of substantial risks “The result of this is that if these nega- “The programme in Iceland has been
to the economy going forward. The risk to tives I have described play out, which is very very unusual for the IMF and you should 100 SOUTH AFRICAN RAND 48.3500 44.4800 44.2800
the financial sector, for instance, from com- likely, when the inventory readjustment is recognise that, that they did not follow the 100 SRI LANKA RUPEE 3.1900 2.9300 2.7300
mercial real estate .... over, the economy will go into a double standard prescription that they did in most of 100 SWEDISH KRONA 51.7000 47.0100 46.8100
“And there are risks to the real sec- dip.” the world, which would have been immedi- 100 THAI BAHT 11.1800 9.4800 9.0800
tor caused by states having a shortfall of Stiglitz has been a sharp critic of policies ate fiscal contraction, no capital controls and Source: Malayan Banking Berhad/Bernama
revenue and the withdrawal of (govern- advocated by the International Monetary very high interest rates.
ment) stimulus packages in 2011 will be a Fund, contending that they aggravate crises “You should understand that, that you got
negative shock to the economy.” and impose public hardship. more generous treatment has caused a lot of China unveils jet at
Stiglitz, former World Bank chief econo- Iceland, which had suffered mightily in resentment in the rest of the world. I was just Asia’s biggest air show
mist and an adviser to US former president the current global downturn, last October in Thailand and people were saying ‘double
Bill Clinton, said household balance sheets needed a US$2.1-billion (RM7.35 billion) standards, you treat people in Europe better HONGKONG: China’s largest home-produced commer-
had been “destroyed”, which meant that rescue loan from the IMF. than you treat people in Asia.’ cial jet makes its international debut at Asia’s biggest
“savings have gone up from zero to 7-9%.” Stiglitz in a speech at the University of “So you should understand that there are air show yesterday, in a demonstration of the country’s
A rising savings rate cuts into consumer Reykjavik maintained that Iceland had in consequences of the fact that you have been ambition to be a global aviation giant.
spending, which is responsible for roughly fact received gentler treatment from the IMF treated a little bit better.” – AFP An arm of the state-owned Aviation Industry Corp
of China (AVIC) is to unveil its C919 in Hongkong, with
some observers hailing the moment as proof the fast-

Hershey considers rival Cadbury bid: Report
NEW YORK: US chocolate maker Hershey
could jump into a takeover battle with a bid
for Cadbury after the British confectioner
rejected an offer from food giant Kraft Foods,
the Wall Street Journal said yesterday.
The Pennsylvania-based company “is likely
to make some response” to Kraft’s Monday
bid, the financial daily said, citing a source
close to the matter.
Hershey’s potential bid rises from
awareness “that Cadbury is the last major
confectionery company potentially available,”
said the person familiar with the situation
according to the financial daily.
In comparison to Kraft, Hershey’s posi-
tion in the market is diminutive – its annual
turnover of some US$5 billion (RM17.5 billion)
is eight times smaller than the food giant.
However, the Journal noted, Hershey and
Cadbury have a long working relationship,
having talked about combinations in the
past. The firm also distributes the iconic
British confectioner’s products in the United
States.
On Monday Kraft Foods’s US$16.7 billion
(RM58.45 billion) bid was spurned by Cadbury,
though Kraft said it hoped the British group
would eventually jump on board.
Cadbury’s share price, however, surged on
the news and ended the day with a gain of
37.85% at 783 pence.
In January 2007 top Hershey and Cadbury
officers sat down to consider forming a
“global confectionery powerhouse,” though
the financial daily said nothing came of the
discussions.
Kraft Foods, the world’s second biggest
food group after Nestle, said it hoped the
takeover would increase annual revenues to
US$50 billion (RM175 billion) a year.
A tie-up between Kraft and Cadbury would
merge leading Kraft brands Oreo biscuits and
Maxwell House coffee with Cadbury’s Dairy
Milk chocolate and Trident chewing gum.
Cadbury’s chief executive Todd Stitzer,
however, maintained that the proposal “fun-
damentally undervalues” the company and
its prospects. – AFP
rising Communist country has arrived in the industry.
“It’s the first time that China has put a face in front of
the global aviation industry,” said Richard Thiele of Reed
Exhibitions, which has organised the Asian Aerospace
International Expo and Congress, starting yesterday.
The jet, which according to state media will be ready
for service in 2016, is part of China’s long-term plan to
break the duopoly of Airbus and Boeing in the produc-
tion of large commercial aircraft.
The plane was built by state-linked Commercial
Aircraft Corporation of China, one of at least 11 Chinese
companies – from suppliers to aircraft management firms
– making its debut at the expo, according to Thiele.
It is no coincidence the event is being held on Chi-
nese soil. The three-day biennial meet, hailed as one
of the world’s most influential air shows, was moved
from Singapore to Hongkong in 2007 to be closer to
mainland China, now seen as the world’s fastest grow-
ing aviation market. – AFP