theSun | TUESDAY JUNE 23 2009 17

1,045.97 T
13.53 9,826.27 S
40.01
business KLCI
STI 2,266.92  6.26
T
Nikkei
TSEC 6,341.21 110.06
S
Hang Seng 18,059.55 138.62
S KOSPI 1,399.71 S
16.37
SCI 2,896.30 S
15.81 S&P/ASX200 3,918.20 S
18.60

KL market summary
JUNE 22, 2009
INDICES
FBMEMAS 6,995.27
CHANGE
-103.26
Prices close lower on flu concern
COMPOSITE 1,045.97 -13.53 SHARE prices on Bursa Malaysia closed 32.62 points to 2,321.43 and Finance Index
INDUSTRIAL 2,321.43 -32.62 lower yesterday as market sentiment turned dropped 128.26 points to 8,365.44.
CONSUMER PROD 314.70 -3.62 fragile with concern over rising Influenza A Losers outnumbered gainers 602 to 116
INDUSTRIAL PROD 83.00 -1.75 (H1N1) cases in Malaysia, dealers said. while 146 counters were unchanged, 363
CONSTRUCTION 197.61 -2.75 Despite the gains in regional Asian markets, untraded and 39 suspended.
TRADING SERVICES 137.94 -2.35
FINANCE 8,365.44 -128.26
the local bourse lost its momentum after its Of the heavyweights, Sime Darby declined
PROPERTIES 684.80 -22.66 previous gains were dragged down by selling 15 sen to RM6.85, Maybank lost 10 sen to
PLANTATIONS 5,316.60 -12.03 pressure on heavyweights, they said. RM5.60, Bumiputra-Commerce dropped
MINING 263.44 -12.16 According to dealers, sentiment is likely 20 sen to RM9.05 and Tenaga Nasional fell EXCHANGE RATES June 22, 2009
FBMSHA 7,219.45 -106.20 to remain cautious for the time being while 20 sen to RM7.35. Among the actives, KNM
FBM2BRD 4,702.64 -111.51 the upcoming Invest Malaysia 2009 confer- Group was 0.055 sen lower at 81 sen, UEM
TECHNOLOGY 14.18 -0.04 Foreign currency Bank sell Bank buy Bank buy
ence at the end of this month may provide a Land Holdings lost 13 sen to RM1.38, Com-
TT/OD TT OD
TURNOVER VALUE catalyst to boost sentiment. pugates Holdings dropped half sen to seven
The Plantation Index went down 12.03 sen and Tebrau Teguh declined 7.5 sen to 70.5 1 US DOLLAR 3.5720 3.5070 3.4970
1.238bil RM1.305bil
points to 5,316.6, the Industrial Index fell sen. – Bernama 1 AUSTRALIAN DOLLAR 2.8990 2.7730 2.7570
1 BRUNEI DOLLAR 2.4590 2.3990 2.3910
1 CANADIAN DOLLAR 3.1530 3.0760 3.0640
1 EURO 4.9850 4.8650 4.8450

World Bank sees 4.4% 1 NEW ZEALAND DOLLAR

1 PAPUA N GUINEA KINA
1 SINGAPORE DOLLAR
1 STERLING POUND
1 SWISS FRANC
2.3200
1.4570
2.4585
5.9020
3.3090
2.2170
1.2010
2.3990
5.7590
3.2290
2.2010
1.1850
2.3910
5.7390
3.2140

fall in Malaysia’s GDP

100 ARAB EMIRATES DIRHAM 99.0500 93.7200 93.5200
100 BANGLADESH TAKA 5.5200 5.2000 5.0000
100 CHINESE RENMINBI N/A N/A N/A
100 DANISH KRONE 68.9800 63.3500 63.1500
100 HONGKONG DOLLAR 46.9100 44.4300 44.2300
Count- 100 INDIAN RUPEE 7.7200 7.0900 6.8900
BANGKOK: Malaysia’s real gross projected to register 3.5% growth in was entering an era of slower growth down to 100 INDONESIAN RUPIAH 0.0362 0.0310 0.0260
domestic product (GDP) is expected to 2009 and 5% next year, while the Phil- that would require tighter and more Rainforest 100 JAPANESE YEN 3.7260 3.6360 3.6260
fall by 4.4% this year before recovering ippines would see 0.5% fall this year, effective oversight of the financial
to 2.2% next year and 5.3% in 2011, the before climbing to 2.4% the following system, saying that global growth was
fest 100 NEW TAIWAN DOLLAR N/A N/A N/A
World Bank said in its report on the year. also expected to be negative, with an pg 19 100 NORWEGIAN KRONE 57.5300 52.8100 52.6100
global economic situation. The bank said thanks to China, the expected 2.9% contraction in 2009, 100 PAKISTAN RUPEE 4.5100 4.2100 4.0100
In the report, Global Development growth in developing East Asia and before rebounding to 2% in 2010 and 100 PHILIPPINE PESO 7.5400 7.0900 6.8900
Finance 2009: Charting a Global the Pacific would be the fastest among 3.2% by 2011. 100 QATAR RIYAL 99.6800 94.8100 94.6100
Recovery, the World Bank said the 4.4 the world’s regions and was projected “The need to restructure the bank-
100 SAUDI RIYAL 96.7400 92.0200 91.8200
contraction was a result of high and at 5%. China is expected to grow faster ing system, combined with emerging
undiversified dependence on exports than most other countries this year at limits to expansionary policies in 100 SOUTH AFRICAN RAND 45.5800 41.9300 41.7300
of electronics, oil and crude palm oil, an estimated 9.3% but was likely to high-income countries, will prevent a 100 SRI LANKA RUPEE 3.2100 2.9500 2.7500
all of which were falling sharply, cou- drop to 8.3% next year. global rebound from gaining traction,” 100 SWEDISH KRONA 46.7800 42.4900 42.2900
pled with its relatively small domestic It said excluding China, the GDP said Justin Lin, World Bank chief 100 THAI BAHT 11.2300 9.5200 9.1200
market. in the region was expected to decline economist and senior vice president, Source: Malayan Banking Berhad/Bernama
The bank said in Thailand, a slump by 0.2% in 2009, the slowest since the development economics.
in exports, exacerbated by political crisis of the late 1990s. He said developing countries could
uncertainty, was set to cause output to According to the report, amid glo- become a key driving force in the Satyam Computer is now
contract by 3.2%, following the slow- bal economic recession and financial recovery, assuming their domestic in-
est expansion in developing East Asia market fragility, net private capital vestments rebound with international Mahindra Satyam
during 2008. It is likely to post 2.2% inflows to developing countries fell to support, including a resumption in the MUMBAI: Indian outsourcing firm Satyam Computer
growth in 2010 and 3.1% in 2011. US$707 billion (RM2.5 trillion) in 2008, flow of international credit. announced yesterday it was re-branding itself as it tries
It said in both countries, among the a sharp drop from a peak of US$1.2 Hans Timmer, director of the to recover from the worst-ever corporate scandal.
region’s other middle-income coun- trillion (RM4.2 trillion) in 2007. bank’s Prospects Group, said to In a statement to the Mumbai stock exchange, the
tries, output was projected to contract International capital flows are pro- prevent a second wave of instability, firm said it will now trade under the name “Mahindra
in 2009 due to a fall in exports and jected to fall further in 2009, to US$363 policies had to focus rapidly on finan- Satyam”, reflecting the purchase of the company two
investment. billion (RM1.3 trillion), it said. cial sector reform and support for the months ago by mid-sized outsourcer Tech Mahindra.
Both Indonesia and Vietnam are The report warned that the world poorest countries. – Bernama In April, Tech Mahindra paid nearly US$600 million
(RM2.13 billion) for a majority share of Satyam, which
has been struggling since its founder confessed in Janu-

Global economy still needs stimulus spending ary to falsifying accounts in India’s biggest accounting
fraud. – AFP

SEOUL: Governments should
stick to spending programmes
worth hundreds of billions of dol-
lars to re-ignite growth because
their economies are still weak in
spite of signs that the worst of the
crisis may be past, a World Bank
official said.
World Bank Chief Economist
Justin Lin said in an interview
he was concerned about rising
borrowing costs due to growing
sovereign debt offerings and a
weak external financing condi-
tions for the emerging economies
of Europe and Central Asia.
The bank warned in a report
yesterday that prospects for the
world economy were “unusually
uncertain” and cut its growth fore-
casts for most countries.
“If on the financial side you
have a recovery and on the real
side you also show improvement,
then we will be confident that
we are going to have a sustained
recovery,” Lin told Reuters on
the sidelines of an international
conference.
“It is very important to let the
stimulus continue until the capac-
ity utilisation returns to a normal
level. Otherwise, there is always
a danger that unemployment will
rise and growth slow down.”
Because global growth will
only return to its full potential by
2011, the gap between actual and
potential output, unemployment,
and disinflationary pressures
continue to build, said the World
Bank in its report.
The report compares with
a more upbeat assessment
by the International Monetary
Fund, which said last week that
the decline in global output has
moderated and that it may raise
its 2010 growth forecast for the
world economy.
The World Bank expects the US
and Japan to contract by 3% and
6.8% this year, respectively, worse
than the 2.4% and 5.3% declines
predicted three months ago.
The World Bank recently cut its
forecast for the world economy to
a contraction of 2.9% from 1.7%
but has not released individual
country forecasts.
Lin said the soaring amount
of sovereign debt offerings in the
United States and elsewhere to
fund stimulus packages would
inevitably raise borrowing costs
and could hamper a recovery.
“If the bonds increase in quan-
tity, certainly there will be pressure
on the price and interest rates are
likely to increase,” he said.
“That will increase the cost
of capital, increase the cost of
management. That why we say
there’s some uncertainty.”
He said some of the emerging
markets in Europe and Central
Asian could face financial crises
should the global recovery be
delayed and financing troubles
worsen.
“There certainly is a concern
that they may have a second round
of crisis because of the financing
gap and also if the global economy
doesn’t recover, and their exports
and remittances can’t recover. He
identify any countries that may
face such a scenario. – Reuters

World economy headed for another crash: US guru

MELBOURNE: The world
economy will face a crisis in the
next two years even bigger than
the downturn currently buffeting
the global financial system, a US
forecaster warned yesterday.
Author Harry S. Dent, who
predicted Japan’s slide into
recession in the 1990s and the
present slump, dismissed claims
the worst was over for the world
economy and that “green shoots”
were emerging from the fiscal
firestorm.
Dent said the baby-boomer
generation was set to cut back
on spending, sending the share
and property markets into down-
ward spirals that would dwarf the
recent recovery.
“We’re in the middle of a bear
market rally,” Dent told the Aus-
tralian Broadcasting Corporation.
He said share markets were
likely to continue to gain in the
next few months but would fall
again towards the end of the
year as the global banking system
suffered another meltdown, bot-
toming out in 2011.
Dent said post-war baby
boomers in the Western world
were spending less as they aged,
in a long-term demographic shift
similar to that seen by Japan in
the 1990s.
“Peak spending is age 46, so
we’ve been saying for decades,
we’re going to have this great,
great boom and then around the
end of this decade baby boomers
are going to peak in spending,
prepare for retirement,” he said.
– AFP