16 theSun | FRIDAY JUNE 26 2009

business KLCI
STI
1,074.11
2,302.46
16.26
23.50
Nikkei
TSEC
9,796.08
6,457.61
205.76
77.53
Hang Seng 18,275.03 382.88 KOSPI 1,392.73 28.94
SCI 2,925.05 2.75 S&P/ASX200 3,856.00 49.00

KL market summary
JUNE 25, 2009
INDICES
FBMEMAS
CHANGE
7,198.64 +118.90
CI tracks gains on regional markets
COMPOSITE 1,074.11 +16.26 SHARE on Bursa Malaysia finished higher 159 while 199 counters were unchanged, 358
INDUSTRIAL 2,342.26 +20.24 yesterday, driven by selected blue-chips and untraded and 36 suspended.
CONSUMER PROD 320.10 +4.69 lower-liners, as the market tracked gains on Turnover rose to 1.493 billion shares worth
INDUSTRIAL PROD 85.18 +1.15 regional bourses, dealers said. RM1.522 billion from 1.352 billion shares
CONSTRUCTION 205.41 +5.23 They said sentiment was boosted by the worth RM1.336 billion yesterday.
TRADING SERVICES 142.93 +2.63
Federal Open Market Committee’s decision Among actives, KNM Group rose 2.5 sen to
FINANCE 8,527.85 +114.43
PROPERTIES 716.14 +9.74 to leave key lending rate at a low of zero to 88 sen, Sino Hua-An International added 6.5
PLANTATIONS 5,398.17 +37.30 0.25% yesterday. sen to 53 sen, Tebrau Teguh went up two sen
MINING 279.65 +8.11 A dealer said another reason was the to 79 sen and MK Land
FBMSHA 7,445.31 +122.04 Organisation for Economic Cooperation and Holdings gained four sen to 43.5 sen. EXCHANGE RATES June 25, 2009
FBM2BRD 4,795.72 +35.41 Development’s positive forecasts for the In heavyweights, Sime Darby rose five
TECHNOLOGY 14.39 +0.18 economies of its 30-member nations. sen to RM6.85, Maybank gained 15 sen to Foreign currency Bank sell Bank buy Bank buy
TURNOVER VALUE
The KLCI rose 16.26 points to close at RM5.90, Tenaga increased 25 sen to RM7.80 TT/OD TT OD
1,074.11. and Bumiputra-Commerce Holdings went up 1 US DOLLAR 3.5700 3.5050 3.4950
1.493bil 1.352bil
Gainers outnumbered losers by 510 to 15 sen to RM8.95. – Bernama
1 AUSTRALIAN DOLLAR 2.8920 2.7660 2.7500
1 BRUNEI DOLLAR 2.4590 2.3990 2.3910
1 CANADIAN DOLLAR 3.1030 3.0280 3.0160

Airlines struggle as flu

1 EURO 4.9990 4.8780 4.8580
1 NEW ZEALAND DOLLAR 2.3180 2.2160 2.2000
1 PAPUA N GUINEA KINA 1.4660 1.2280 1.2120
1 SINGAPORE DOLLAR 2.4585 2.3990 2.3910
1 STERLING POUND 5.8950 5.7530 5.7330
1 SWISS FRANC 3.2670 3.1880 3.1730

adds to woes: IATA

100 ARAB EMIRATES DIRHAM 98.9300 93.7000 93.5000
100 BANGLADESH TAKA 5.5200 5.2000 5.0000
Federer 100 CHINESE RENMINBI N/A N/A N/A
on fast 100 DANISH KRONE 69.1400 63.5400 63.3400
track in 100 HONGKONG DOLLAR 46.8900 44.4100 44.2100
GENEVA: Airlines need to tackle a over the Easter period. passenger revenue in the first quarter, pursuit of 100 INDIAN RUPEE 7.6400 7.0200 6.8200
“dramatic” plunge in revenues in the Swine flu probably depressed air we estimate that the drop accelerated history 100 INDONESIAN RUPIAH 0.0360 0.0310 0.0260
industry’s “worst” crisis ever, IATA travel by about one percent globally to as much as minus 30% in May. 100 JAPANESE YEN 3.7370 3.6450 3.6350
said yesterday as international air in May, the first full month to feel the This crisis is the worst we have ever
pg 29
100 NEW TAIWAN DOLLAR N/A N/A N/A
travel continued to drop in May partly impact of the pandemic, IATA said. seen.
100 NORWEGIAN KRONE 57.1700 52.2900 52.0900
due to H1N1 flu. However, the decline in air pas- “Airlines are in survival mode.
Despite signs that the slump in senger traffic slowed in April and May Cutting costs and conserving cash are 100 PAKISTAN RUPEE 4.4800 4.1900 3.9900
passenger traffic since late last year compared to March, indicating “that a the priorities,” the IATA chief added. 100 PHILIPPINE PESO 7.5600 7.1200 6.9200
may be tailing off, the International floor may now have been reached.” Carriers in Mexico, where the 100 QATAR RIYAL 99.6200 94.7600 94.5600
Air Transport Association (IATA) Nonetheless, average passenger swine flu outbreak emerged, experi- 100 SAUDI RIYAL 96.6800 91.9600 91.7600
said there was still significant excess loads per flight continued to decline enced a 40% drop in demand in May, 100 SOUTH AFRICAN RAND 45.7400 42.0800 41.8800
capacity in the airline industry. as the industry failed to cut capacity IATA said.
100 SRI LANKA RUPEE 3.2100 2.9500 2.7500
“We may have hit bottom but we as quickly as demand slumped, while The association groups some 230
are a long way from recovery,” IATA air freight fell by 17.5% in May. carriers accounting for more than 100 SWEDISH KRONA 46.9400 42.5800 42.3800
director-general Giovanni Bisignani “Capacity is not aligned with de- 90% of scheduled international air 100 THAI BAHT 11.2200 9.5200 9.1200
said in a statement. mand. Passenger load factors dropped traffic. Source: Malayan Banking Berhad Bernama
Passenger traffic fell 9.3% last 3.3% points over the last 12 months. It does not include exclusively
month following a year-on-year The impact on revenue is dramatic,” low-cost airlines such as Ryanair
decline of 3.1% in April, a month said Bisignani. and EasyJet whose own figures have
traditionally buoyed by holiday travel “After a 20% fall in international similarly shown sharp falls. – AFP
briefs
Sports Toto to
launch Power Moody’s sees negative outlook Australia out of millionaires top 10
SYDNEY: The global financial crisis has sent the number

Toto 6/55
lotto game
KUALA LUMPUR: Sports Toto
Malaysia Sdn Bhd, a wholly-owned
subsidiary of Berjaya Sports Toto
Bhd, has received the approval to re-
place one of its existing lotto games,
6/42 Jackpot, with another under the
name of “Power Toto 6/55”.
In a statement here yesterday,
Sports Toto said it expects to launch
the 6/55 game in late 2009 once
it has developed the software to
accommodate the game.
It said the 6/55 is expected to be
the front-runner among its other
present lotto-type games namely,
6/49 and 6/52.
Sports Toto is confident the new
game would be well-received by the
public.
“The 6/55 has a much larger
matrix with a minimum guaranteed
upfront jackpot of RM3 million,” it
said.
It said the present 6/52, which
also has a minimum guaranteed up-
front jackpot of RM2 million, is very
successful and has created several
mega jackpots since its launch in
2007.
“Hence, 6/55, which has a
larger matrix and higher minimum
guaranteed upfront jackpot, is ex-
pected to create even bigger jackpots
surpassing those created by 6/52,”
it said.
Sports Toto offers six different
games comprising three digit-type
games namely, 4D, 5D and 6D and
three lotto-type games namely, 6/42,
6/49 and 6/52. – Bernama
for SE Asian banking systems
KUALA LUMPUR: Moody’s Investors Service sees
a negative industry outlook for banking systems in
Southeast and South Asia.
The view reflects the impact of the slowdown
in global and domestic economies on the region’s
banks. “The slowdowns are clearly making them-
selves felt in the performance of banks in the
region,” said Jerry Chien, managing director for
Moody’s Financial Institutions Group in Asia Pacific.
By contrast, rating outlook vary, between stable
and negative, he said in a statement issued by
Moody’s.
Chien was speaking following the release
of Moody’s latest annual Asian Banking System
Outlook, which covers 16 jurisdictions.
The report is authored by senior analysts with
the Moody’s Financial Institutions team.
According to the report, in Malaysia, loan de-
mand will soften and credit costs will rise as less
robust earnings weaken the repayment capabili-
ties of borrowers.
The report also indicated that there was keen
competition – which will pressure product margins
– while a weaker property market could reduce
the recovery prospects of problem loans.
In Thailand, the intrinsic financial strength of
banks remains adversely affected by the pro-
tracted economic crisis and ongoing domestic
political instability, the report highlighted.
It also indicated that the presence of high credit
risk concentrations in some sectors, heightens
their risk profiles, making losses and writedown
requirements more unpredictable.
In Indonesia, over the next 12 months, banks
will face increasing pressure – particularly from
asset quality – although they will fare relatively
better as the economy slows, rather than con-
tracts, it said.
Rapid loan growth, averaging 20% annually over
the past five years, could further be a potential
source of higher credit costs. These newly under-
written loans will test upgraded risk management
systems.
The report concluded the Indonesian analysis
by saying that, restructured loans – although much
reduced –- are vulnerable to a downturn and could
be a problem for state-owned banks.
As for Singapore, the Moody’s report said loan
demand had softened, while credit costs were
rising as the repayment capabilities of borrowers
had been gradually impacted.
It also said that market-sensitive income is
likely to remain volatile.
Turning the spotlight on the Philippines, the
report revealed that loan growth will slow, but
probably stay positive, while falling interest rates
are placing additional pressure on bank margins.
In addition, the challenges in the economic and
financial markets would depress bank earnings
and pressure asset quality, but no significant credit
losses are expected.
When looking at the prospects of Asia’s banks
as a whole, the Moody’s report sees challenges
in light of the severe and protracted nature of the
current global recession.
Moody’s said that the report basically reflected
its cautious stance over the next 12 months.
It added that while mildly positive macro-eco-
nomic indicators and signs of a stock market re-
bound have recently emerged, the unprecedented
nature of the financial crisis raises questions over
the certainty of a swift recovery.
Another significant uncertainty, Moody’s said,
is whether the recent surge in wealth across Asia
can generate sufficient levels of consumption to
compensate for lower demand from the US and
other developed economies which are traditionally
significant buyers of goods from the continent.
Moody’s said that it was also important to note
the significant steps taken since the Asian financial
crisis and the fact that standards for accounting,
transparency, governance, risk management and
regulation have all improved markedly throughout
the region.
The full report, “Asia Banking Outlook 2009”,
can be found at www.moodys.com. – Bernama
of millionaires in Australia plunging and forcing it out of
the world’s top 10, according to a new survey.
Despite escaping the worst of the downturn so far,
Australia’s number of high-flyers dropped 23.4% to
129,000 by the end of 2008, placing it 11th out of 71
countries, the Merrill Lynch-Capgemini study said.
Australia had been a member of the exclusive top-10
club since 2006, said Capgemini Financial Services senior
manager Wayne Li.
“The decline in our high net worth population meant
that Australia slipped in its global ranking from number 10 in
2006 and 2007 to number 11 in 2008,” Mr Li said. – AFP
China plans huge wind farm
BEIJING: China is aiming to build a huge wind farm in
the northwest by 2020 that will have energy capacity
similar to the gigantic Three Gorges Dam, a senior
official said yesterday.
Feng Jianshen, a vice governor of Gansu province,
told reporters that the province planned to expand
the installed capacity of its wind power base to more
than 20 gigawatts in 11 years, more than 10 times
the current level.
“Gansu will have built a ‘Three Gorges on the land’
by then,” he said, referring to the country’s US$23-
billion (RM80.5 billion) dam that spans the middle
reaches of the Yangtze River. – AFP
Australia doing better than
average
MELBOURNE: Australia is doing better than most other
economies during the worst global recession in 75 years,
Prime Minister Kevin Rudd said.
He said two international reports released today
showed that the government’s “early and decisive action”
had helped cushion the Australian economy from the
worst impact of the global recession.
The International Monetary Fund (IMF) and the
Organisation for Economic Co-operation and Development
(OECD) both released reports on Australia yesterday.
The IMF has upgraded its Australian growth forecast to
a 0.5% contraction for 2009 and 1.5% expansion in 2010.
Previously, the IMF had forecast growth declining 1.4%
this year and increasing 0.6% next year. – Bernama