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TheSun 2008-11-25 Page16 Bank Negara Reduces OPR To 3.25%
TheSun 2008-11-25 Page16 Bank Negara Reduces OPR To 3.25%
TheSun 2008-11-25 Page16 Bank Negara Reduces OPR To 3.25%
business news
Hang Seng
12,457.94
S&P/ASX200 TSEC KLCI
855.39
STI
1,620.29
KOSPI
970.14 NIKKEI
KL market summary
3,425.1 4,160.54
201.26 11.49 41.81 33.59 NO
8.6 10.56 TRADING
NOVEMBER 24, 2008
INDICES CHANGE
FBMEMAS 5,622.06 -76.76
OPR to 3.25%
PLANTATIONS 3,689.03 -38.14
MINING 247.23 +4.06
FBMSHA 5,809.39 -109.83
FBM2BRD 4,253.73 -100.49
TECHNOLOGY 13.20 -0.19
TURNOVER VALUE
472.5500 mil RM520.715mil
KUALA LUMPUR: Bank Negara prompted authorities to provide 2008, it said.
Malaysia, at its Monetary and significant liquidity support to the Going forward, the lower cost
Policy Committee (MPC) meeting
yesterday, decided to reduce the
financial system, undertake financial
sector resolution measures, as well
pressures and the slowdown in
demand are expected to exert a Prices lower due to
overnight policy rate (OPR) to 3.25%
from 3.5%.
as fiscal stimulus and monetary
easing to support economic growth,
greater dampening influence on
inflation, the central bank said. weakened sentiment
The ceiling and floor rates Bank Negara said. Inflation is, therefore, expected to SHARE prices on Bursa Malaysia ended the day lower as
of the corridor for the OPR are The impact of these measures moderate significantly, particularly sentiment weakened over worries of the real economy,
correspondingly reduced to 3.5% and will, however, take some time to be in the second half of 2009, it said. which seems somewhat affected due to the US financial
3% respectively, the central bank fully realised, it said. Given the heightened downside meltdown.
said in a statement. The adverse global developments risks to growth and the diminishing The benchmark KLCI ended 11.49 points lower to
Since the previous MPC meeting, have already affected the Malaysian inflationary pressures, the reduction 855.39 after opening at 863.32, down 3.56 points yes-
the outlook for global growth has economy, as evidenced by the in the OPR is a pre-emptive terday morning.
deteriorated further, Bank Negara slowdown in export performance measure aimed at providing a Lenon According to a OSK research note, the KLCI will remain
said. and lower equity prices, Bank more accommodative monetary to star immune to the US market as it had been trading relatively
Several major advanced Negara said. environment, Bank Negara said. for flat over the past two weeks.
economies are now in recession While domestic demand remains To further reduce the cost of It noted that in the past three weeks, key indices in
amid severe stress in their respective resilient, there are indications of intermediation, the MPC also decided England the US market swung in excess of 5% in six separate
financial systems, it said. slower private sector activity amid to reduce the statutory reserve pg 31 sessions.
The sharp slowdown in global some softening in the labour market requirement (SRR) from 4% to 3.5%, Technically, immediate resistance for the KLCI was
demand, the significant fall in conditions and a more challenging with effect from Dec 1, 2008. seen at the 883 point level while initial support is situated
commodity prices and the substantial business environment, it said. Going forward, the global at the 838-859 points area, it said.
decline in equity prices have exerted It added that under these economic and the international Losers led gainers by 346 to 157 while 184 counters
greater downward pressure on conditions, sustaining domestic financial conditions are expected were unchanged, 628 untraded and 31 others sus-
the growth prospects of regional demand is key to ensuring that to continue to remain volatile and pended.
economies, the central bank said. growth in 2009 remains positive. uncertain. Trading was moderate with a volume of 472.550 mil-
In this environment, global The risk to domestic price stability Bank Negara said it will monitor lion shares worth RM520.715 million, down from the
inflation has begun to recede and is now substantially reduced, closely the evolving developments 542.058 million shares worth RM649.370 million recorded
this downward trend is expected to according to Bank Negara. and will undertake the appropriate last Friday.
continue, it said. Inflation has begun to moderate policy response to avoid a severe Leading the actives list, Zelan rose 2.5 sen to 77.5 sen,
These global developments have from its peak in the third quarter of economic downturn. – Bernama KNM shed three sen to 54.5 sen and UEM Land erased
5.5 sen to 59 sen.
Of the heavyweights, Sime Darby lost five sen to
RM5.80, MISC was flat at RM8.25 and Public Bank