16  theSun | TUESDAY NOVEMBER 25 2008

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

Bank Negara reduces

COMPOSITE 855.39 -11.49
INDUSTRIAL 2,058.18 -45.10
CONSUMER PROD 273.98 -0.10
INDUSTRIAL PROD 67.55 -0.40
CONSTRUCTION 151.50 -0.64
TRADING/SERVICES 119.55 -2.27
FINANCE 6,548.54 -52.40
PROPERTIES 511.06 -9.98

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

KUALA LUMPUR: Bank Negara
Malaysia, at its Monetary and
Policy Committee (MPC) meeting
yesterday, decided to reduce the
overnight policy rate (OPR) to 3.25%
from 3.5%.
The ceiling and floor rates
of the corridor for the OPR are
correspondingly reduced to 3.5% and
3% respectively, the central bank
said in a statement.
Since the previous MPC meeting,
the outlook for global growth has
deteriorated further, Bank Negara
said.
Several major advanced
economies are now in recession
amid severe stress in their respective
financial systems, it said.
The sharp slowdown in global
demand, the significant fall in
commodity prices and the substantial
decline in equity prices have exerted
greater downward pressure on
the growth prospects of regional
economies, the central bank said.
In this environment, global
inflation has begun to recede and
this downward trend is expected to
continue, it said.
These global developments have
prompted authorities to provide
significant liquidity support to the
financial system, undertake financial
sector resolution measures, as well
as fiscal stimulus and monetary
easing to support economic growth,
Bank Negara said.
The impact of these measures
will, however, take some time to be
fully realised, it said.
The adverse global developments
have already affected the Malaysian
economy, as evidenced by the
slowdown in export performance
and lower equity prices, Bank
Negara said.
While domestic demand remains
resilient, there are indications of
slower private sector activity amid
some softening in the labour market
conditions and a more challenging
business environment, it said.
It added that under these
conditions, sustaining domestic
demand is key to ensuring that
growth in 2009 remains positive.
The risk to domestic price stability
is now substantially reduced,
according to Bank Negara.
Inflation has begun to moderate
from its peak in the third quarter of
2008, it said.
Going forward, the lower cost
pressures and the slowdown in
demand are expected to exert a
greater dampening influence on
inflation, the central bank said.
Inflation is, therefore, expected to
moderate significantly, particularly
in the second half of 2009, it said.
Given the heightened downside
risks to growth and the diminishing
inflationary pressures, the reduction
in the OPR is a pre-emptive
measure aimed at providing a
more accommodative monetary
environment, Bank Negara said.
To further reduce the cost of
intermediation, the MPC also decided
to reduce the statutory reserve
requirement (SRR) from 4% to 3.5%,
with effect from Dec 1, 2008.
Going forward, the global
economic and the international
financial conditions are expected
to continue to remain volatile and
uncertain.
Bank Negara said it will monitor
closely the evolving developments
and will undertake the appropriate
policy response to avoid a severe
economic downturn. – Bernama
TURNOVER VALUE
472.5500 mil RM520.715mil
Prices lower due to
weakened sentiment
SHARE prices on Bursa Malaysia ended the day lower as
sentiment weakened over worries of the real economy,
which seems somewhat affected due to the US financial
meltdown.
The benchmark KLCI ended 11.49 points lower to
855.39 after opening at 863.32, down 3.56 points yes-
terday morning.
Lenon According to a OSK research note, the KLCI will remain
to star immune to the US market as it had been trading relatively
for flat over the past two weeks.
It noted that in the past three weeks, key indices in
England the US market swung in excess of 5% in six separate
pg 31 sessions.
Technically, immediate resistance for the KLCI was
seen at the 883 point level while initial support is situated
at the 838-859 points area, it said.
Losers led gainers by 346 to 157 while 184 counters
were unchanged, 628 untraded and 31 others sus-
pended.
Trading was moderate with a volume of 472.550 mil-
lion shares worth RM520.715 million, down from the
542.058 million shares worth RM649.370 million recorded
last Friday.
Leading the actives list, Zelan rose 2.5 sen to 77.5 sen,
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

Berjaya Media’s Q3 pre-tax profit up dropped 15 sen to RM8.35. – Bernama

KUALA LUMPUR: Berjaya Media Berhad (for-

merly known as Nexnews Berhad) reported
a consolidated third quarter (ending Sept 30,
2008) revenue of RM15.61 million and pre-
tax profit of RM37.29 million as compared to
RM29.13 million revenue and pre-tax profit of
RM1.79 million in the preceding year’s cor-
responding quarter.
The decrease in revenue was mainly due
to the deconsolidation of The Edge with effect
from March 1, 2008.
The increase in pre-tax profit was mainly
due to the recognition of exceptional gain aris-
ing from the disposal of The Edge which was
completed on Aug 26, 2008.
For the nine months ended Sept 30, 2008,
the group registered a consolidated revenue of
RM52.73 million and pre-tax profit of RM42.49
million as compared to RM75.32 million and
RM2.82 million pre-tax profit in the preceding
year’s corresponding period.
The decrease in revenue was mainly due
to the deconsolidation of The Edge and hence
only two months results (up to Feb 29, 2008)
of The Edge was consolidated in the current
financial period.
The increase in pre-tax profit was mainly due
to turnaround in profitability of its principal sub-
sidiary, Sun Media Corporation Sdn Bhd arising
from improved advertisement revenue coupled
with lower operating expenses of certain sub-
sidiaries and the recognition of exceptional gain
arising from the disposal of The Edge.
On the current year prospects, the group,
which operates in a challenging business envi-
ronment, said it is continuously working towards
improving its advertisement revenue by way of
increasing its market share and rates.
However, the increase in newsprint prices
will have an adverse impact on its publishing
costs.
This, coupled with the current economic
environment, will impact its operating results
for the remaining period of the financial year.
In an announcement to Bursa Malaysia
yesterday, the group said its board of directors
has approved the change of financial year end
of the company from Dec 31 to April 30.
Thus, the next set of financial statements
will be made up from Jan 1, 2008 to April 30,
2009 covering a period of 16 months.
Thereafter, the financial year end of the
company shall end on April 30 for each sub-
sequent year.
Media Prima’s 9-month
pre-tax profit at RM107m
KUALA LUMPUR: Media Prima Bhd has registered a pre-
tax profit of RM107.066 million for the nine months ended
Sept 30, 2008, up from RM101.760 million in the same
period of the previous financial year.
During the same period, the group recorded higher rev-
enue of 16% to RM572.365 million from RM492.344 million,
reflecting the strong contribution especially from its radio
networks, outdoor division and newspaper business.
Accordingly, Media Prima’s net profit for the nine-month
period rose to RM81.374 million from RM78.566 million
recorded in the previous corresponding year.
In the third quarter, the group’s pre-tax profit fell to
RM47.168 million from RM58.697 million in the correspond-
ing quarter in the preceding year. – Bernama