Thesun 2008-11-25 Page16 Bank Negara Reduces Opr To 3.25%

16 

theSun

| TUESDAY NOVEMBER 25 2008

business news Hang Seng

S&P/ASX200

TSEC

KLCI

STI

KOSPI

12,457.94

3,425.1

855.39

1,620.29

970.14

201.26

4,160.54

8.6

10.56

11.49

41.81

33.59

NIKKEI

NO TRADING

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

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 subsidiary, Sun Media Corporation Sdn Bhd arising from improved advertisement revenue coupled with lower operating expenses of certain subsidiaries 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 environment, said it is continuously working towards

INDICES

CHANGE 5,622.06 855.39 2,058.18 273.98 67.55 151.50 119.55 6,548.54 511.06 3,689.03 247.23 5,809.39 4,253.73 13.20

-76.76 -11.49 -45.10 -0.10 -0.40 -0.64 -2.27 -52.40 -9.98 -38.14 +4.06 -109.83 -100.49 -0.19

TURNOVER

VALUE

472.5500 mil

RM520.715mil

Prices lower due to weakened sentiment

Lenon to star for England pg 31

Berjaya Media’s Q3 pre-tax profit up KUALA LUMPUR: Berjaya Media Berhad (formerly known as Nexnews Berhad) reported a consolidated third quarter (ending Sept 30, 2008) revenue of RM15.61 million and pretax 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 corresponding 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 arising 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

NOVEMBER 24, 2008

FBMEMAS COMPOSITE INDUSTRIAL CONSUMER PROD INDUSTRIAL PROD CONSTRUCTION TRADING/SERVICES FINANCE PROPERTIES PLANTATIONS MINING FBMSHA FBM2BRD TECHNOLOGY

Bank Negara reduces OPR to 3.25% 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

KL market summary

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 subsequent year.

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 yesterday morning. According to a OSK research note, the KLCI will remain immune to the US market as it had been trading relatively flat over the past two weeks. It noted that in the past three weeks, key indices in the US market swung in excess of 5% in six separate 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 suspended. Trading was moderate with a volume of 472.550 million 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 dropped 15 sen to RM8.35. – Bernama

Media Prima’s 9-month pre-tax profit at RM107m KUALA LUMPUR: Media Prima Bhd has registered a pretax 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 revenue 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 corresponding quarter in the preceding year. – Bernama