28œ theSun | FRIDAY NOVEMBER 14 2008

business news Hang Seng

13,221.35
S&P/ASX200
3,697.3
TSEC
4,437.83
KLCI
880.59
STI
1,755.47
KOSPI
1,088.44
Nikkei
8,238.64
717.74 230 177.74 9.75 28.54 35.42 456.87

market summary
OCBC-led consortium arranges US$130m syndication for M3nergy November 13 , 2008

INDICES CHANGE
KUALA LUMPUR: M3nergy The syndication also involves tanker into a floating, storage and M3nergy Group. FBMEMAS 5,808.78 -60.00
Labuan (MLL), a wholly-owned RHB Bank Berhad and Malayan offloading vessel which would “Despite the recent upheav- COMPOSITE 880.59 -9.75
subsidiary of M3nergy Berhad, Banking Berhad, which act as be chartered to Carigali-PTTEPI als in the US and global capital INDUSTRIAL 2,122.11 -8.80
has secured a US$130 million lead arranger and lead manager Operating Compang Sdn Bhd markets, the successful closure CONSUMER PROD 273.91 +0.14
(RM455 million) syndicated for the syndication respectively. under a 16-year lease contract. of this syndication is a testament INDUSTRIAL PROD 70.57 -0.55
CONSTRUCTION 158.60 -2.29
credit facility from a consortium According to M3nergy Berhad Commenting on the exer- of the participating banks’ con-
TRADING/SERVICES 123.72 -0.71
of lenders led by OCBC Bank chief executive officer Datuk cise, OCBC Bank head of Invest- fidence in the well-structured FINANCE 6,717.61 -117.26
(Malsysia) Berhad, which acts Shahrazi Sha’ari, the majority ment Banking, Tan Ai Chin, said financing package and track PROPERTIES 531.27 -4.35
as both the mandated lead ar- of the proceeds from the syn- OCBC Bank is pleased to be record of M3nergy as a reputable PLANTATIONS 3,820.03 -72.14
ranger and sole book runner for dication would be used to part- able to structure and success- service provider in the oil and MINING 251.28 unch
the syndication. finance the conversion of an oil fully close the syndication for gas industry”. FBMSHA 6,025.19 -64.49
FBM2BRD 4,401.93 -41.87
TECHNOLOGY 14.71 +0.31

Global stocks tumble as

TURNOVER VALUE
605.833mil RM1.023bil

CI continues to slide
It is shocking SHARE prices on Bursa Malaysia continued to

bad news stacks up

TOKYO: Asian stocks plunged
today, dragged down by heavy
losses on Wall Street after the US
government tore up a plan to buy
toxic mortgage assets and fears
mounted of a deep recession in
Europe.
European markets were set
for another rocky ride as the
Germany announced its economy
officially entered recession,
contracting for a second straight
quarter.
A profit warning from the
biggest US consumer electronics
retailer, Best Buy, also sapped
confidence, which was already
fragile following weeks of market
turmoil sparked by a global credit
crunch.
Adding to the gloom, Intel
Corp, the world’s biggest
computer chipmaker, cut
its fourth-quarter revenue
projections, saying the economic
slowdown would hurt its business
across the board.
Washington’s U-turn on the
financial bailout plan “also came
out of the blue, discouraging
investors,” said Motoki Ichikawa,
investment information chief at
SMBC Friend Securities.
Stocks tumbled 5.25% in Tokyo
by the close while Sydney ended
down 5.9% at a four-year low.
Hongkong shares closed 5.15%
lower.
Markets around the region
were mired in losses after Wall
Street’s Dow Jones Industrial
Average sank 4.73% on
Wednesday after a raft of gloomy
corporate news and the shift in
the bailout strategy.
“It looks like world markets
will take another leg down in the
next few days,” Goldman Sachs JB
Were senior sales trader Patrick
Crabb in Melbourne told Dow
Jones Newswires.
“We passed through the eye of
the hurricane and are now back
feeling the full force of the storm.”
Treasury Secretary Henry
Paulson said the Wall Street
bailout plan would be refocused
on continued capital injections for
ailing banks and possible steps
to help the non-bank financial
sector, such as car loans and
credit cards.
“It is shocking to see the US
government deciding not to use
any of the US$700 billion (RM2.45
trillion) on buying mortgage-
related assets, which were the
primary reason for the bailout
package,” Dariusz Kowalczyk,
chief investment strategist at CFC
Seymour in Hongkong, wrote in a
note to clients.
Paulson ruled out using part of
the US$700-billion rescue package
for the troubled auto sector, which
has warned it will soon run out of
cash. The White House refused to
say whether US auto giants were
too big to fail.
China meanwhile reported
a sharp slowdown in industrial
production growth – the latest
sign that the Asian economic
powerhouse is losing steam.
Premier Wen Jiabao was
quoted in the state media as
saying the impact of the global
financial woes on China’s
economy was “worse than
expected.”
European stock markets also
dropped on Wednesday, as the
Bank of England said the British
economy was likely in recession.
In Kuwait, stock exchange
trading was halted after a court in
the Gulf state ordered the bourse
to be suspended in a bid to stem
massive losses for small investors.
- AFP
briefs
AirAsia X sees
profitable year ahead
TOULOUSE: Long-haul budget carrier
AirAsia X Sdn Bhd, which has well over
RM300 million cash in hand, is set to
turn in profits next year, says its chief
executive officer Azran Osman-Rani.
“Probably within three to four
months from operating our new planes,
we will be profitable. With new planes,
more passengers will fly,” Azran said.
“Most important is cash flow and
this is how we convince our financiers.
We have been cash positive since
April 2008,” he said on board AirAsia
X’s brand new Airbus A330 aircraft on
its ferry (first) flight from Toulouse to
Kuala Lumpur recently.
On Oct 31, AirAsia X took delivery
of its first new A330-300, which is for
be in negative territory at close yesterday with
to see the US losses led by Maybank, IOI Corporation and TM
government International, dealers said.
deciding not to At the closing bell, the KLCI declined 9.75 points
use any of the or 1.1% to 880.59, after opening 12.14 points lower
US$700 billion at 878.20.
Losers led gainers by 386 to 173 while 161
(RM2.45 trillion) counters were unchanged, 642 untraded and 32
on buying others suspended.
mortgage-related TM, which led the actives, eased two sen to
assets, which RM2.77, KNM declined 3.5 sen to 71 sen, IOI Cor-
poration lost 14 sen to RM3.06 while Resorts World
were the primary gained seven sen to RM2.62.
reason for the As for the heavyweights, Sime Darby and MISC
bailout package.” eased five sen each to RM6.35 and RM8.35 respec-
tively, Public Bank edged up 10 sen to RM8.60 and
Dariusz Kowalczyk, Tenaga added five sen to RM6.20.
chief investment Maybank lost 30 sen to RM5.15, Bumiputra-
strategist at CFC Commerce dropped 10 sen to RM6.10.
Seymour in Hongkong – Bernama
its long-haul operation, linking Kuala to halt the sell-off.
Lumpur with destinations in Australia, US crude futures were 19 cents
North Asia, the Middle East and Europe, firmer at US$56.35 by 1158GMT, recov-
complementing the existing AirAsia
network. Launched in January last
ering from a session low of US$54.67
– the weakest level since Jan 30, 2007.
year, the affiliate of low-cost AirAsia London Brent crude fell seven cents to
Bhd earlier this year placed an order US$52.30. – Reuters
for 25 Airbus A330 aircraft.
Despite reports of a global decline in BT profits up, to cut
passenger traffic, Azran said the carrier
was still experiencing a strong forward 10,000 jobs
bookings from November to March. LONDON: British telecoms operator
He said the carrier was on track to BT Group said yesterday its second-
start its new flights to London in March. quarter net profit jumped 18% but
For its London flights, AirAsia X is in talks that it would cut 10,000 jobs by March
with three airports – Stansted, Man- 2009, mostly in Britain.
chester and East Midlands. – Bernama BT said net profit in the three
months to September totalled £400
milllion (RM2.16 billion) as sales rose
Oil hits 22-month low 4.1% to £5.3 billion.
below US$55 The company its international serv-
LONDON: Oil dropped to a 22-month ices were not good enough and it was
low under US$55 (RM192.50) yes- taking action to remedy the problems.
terday as evidence piled up global Accordingly, it would cut 10,000 jobs by
recession would have a deep impact the end of March – 4,000 from among
on demand and news Opec might take its own staff and 6,000 from among its
more emergency action did only a little sub-contractors and consultants.– AFP