Thesun 2009-04-01 Page14 Asia Growth To Halve This Year Warns Adb

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theSun

| WEDNESDAY APRIL 1 2009

business KLCI STI Hang Seng SSE

872.55 1,699.99 13,576.02 2,373.21

3.21 26.85 119.69 15.17

Nikkei TSEC KOSPI S&P/ASX200

8,109.53 5,210.84 1,206.26 3,582.10

KL market summary

126.55 4.79 8.80 22.30

MARCH 31, 2009 INDICES

Bursa on firm note SHARE prices on Bursa Malaysia ended mostly firmer across-the-board yesterday in line with regional uptrend, dealers said. They said, however, the losses in the plantation sector limited the gains. SJ Securities analyst, Phua Kwee Hock, said the local market’s upside would likely be capped at 876 for the week as it was likely to soften ahead of trade and jobs data on Friday. The benchmark KLCI rose 3.21 points to close at 872.55 after opening 2.13 points lower at 867.21. Gainers led losers by 280 to 179 while 176 counters were unchanged, 635 untraded and 58 others suspended. Among the actives, Resorts World added six sen to RM2.14, IOI Corp dropped 10 sen to RM3.80, KNM Group increased 10 sen to 38.5 sen, Maybank rose 20 sen to RM3.86 and Malaysian Resources inched up one sen to 85 sen.

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

CHANGE 5,701.13 872.55 2,100.19 284.99 65.86 168.00 116.65 6,541.58 504.37 4,487.74 224.94 6,019.77 3,872.38 11.14

TURNOVER 382.543mil

+25.06 +3.21 +6.37 +1.62 +0.32 +1.7 +0.65 +81.07 +1.19 -52.84 unch -3.25 -16.31 +0.03

VALUE RM759.104mil

Of the heavyweights, Sime Darby, Tenaga and Bumiputera Commerce each dipped five sen to RM5.70, RM6.10 and RM6.85 respectively. MISC increased five sen to RM8.35 and Public Bank added 10 sen to RMRM7.55. – Bernama

Asia growth to halve this year, warns ADB HONGKONG: Growth in Asia’s developing nations will almost halve this year, the Asian Development Bank said, while data from Japan showed unemployment in the region’s leading economy was at a three-year high. Days before G20 leaders meet to discuss a way out of the worst global downturn in 70 years, Fortis financial holding group revealed US$37 billion (RM133.2 billion) in losses, further underscoring the depth of the crisis. The Asian Development Bank (ADB) said Asia’s developing economies would expand by just 3.4% this year, down from the 6.3% seen last year and 9.5% in 2007. The slowdown will mean more than 60 million people in the region will remain mired in poverty, the bank said in its annual Asian Development Outlook. “The short-term outlook for the region is bleak as the full impact of the severe recession in industrialised economies is transmitted to emerging markets,” said ADB acting chief economist Jong-Wha Lee. However, it predicted an expansion of 6% in 2010. The report said China, the major driver of the region’s growth in the past decade, would expand by 7% this year, much below Beijing’s target of 8% seen as the

briefs Maybank: Ringgit to hit 3.50 by year-end KUALA LUMPUR: The ringgit is expected to strengthen to RM3.50 against the US dollar by year-end from between RM3.60 and RM3.65 currently, said Maybank Investment Bank Bhd. Its chief economist/vice-president Suhaimi Ilias said the gain was in line

minimum required to prevent mass unemployment. The report looks at the prospects for 44 jurisdictions stretching from the former Soviet states of Central Asia to some of the tiny Pacific islands. It excludes developed countries such as Japan, Australia and New Zealand. Several of the region’s most export-dependent economies, including Hongkong, Taiwan, South Korea, Malaysia, Singapore and Thailand, will contract in 2009, the report said. In Japan, the world’s second largest economy, officials released figures showing unemployment hit 4.4% in February, matching a high last seen in January 2006. Tokyo said the figures showed there were only 59 available jobs for every 100 job-seekers. At the same time the government said consumer spending fell 3.5% month-to-month as the economic powerhouse heads for its worst recession since World War II. “There is no good news in those data,” said JP Morgan senior economist Masamichi Adachi. Japan’s heavily exportdependent economy shrank at an annualised pace of 12.1% in the last quarter of 2008, as the downturn has dried up demand for its cars, hi-tech goods and other popular exports. – AFP with the weakening US dollar as the governments, especially in the US, would have to finance their huge fiscal deficit of US$1 trillion a year. “I don’t think they can actually tap the saving and surplus of East Asia. Most likely they will have to print money which is what they have already started to do. “When you print money, it will increase supply relative to demand, prices of goods or services or even mining will have to come down,” he told reporters on the sidelines of Financial Planning Seminar yesterday. Suhaimi said Malaysia’s economy would likely recover from technical

World Bank plans new US$50bil trade funds Call to use new media pg 15

LONDON: World Bank chief Robert Zoellick announced plans yesterday for a new US$50-billion (RM180 billion) trade liquidity fund, urging G20 leaders to back it when they meet in London this week. Speaking two days before a summit of the Group of 20 developed and emerging economies, he said the fund would be a key part of plans by British Prime Minister Gordon Brown, who will host the gathering. “Today, the World Bank group’s board is considering a new proposal: the launch of a US$50-billion Global Trade Liquidity Programme,” said Zoellick. “I hope the G20 leaders will endorse this trade liquidity initiative. G20 backing will help us gain more momentum,” he added. Last week Brown and Brazil’s President Luiz Inacio Lula da Silva proposed creating a US$100-billion global fund to spur trade amid the world cash crunch during a pre-G20 summit trip by Brown. Zoellick said his call was the “cornerstone” of the fund proposed by Brown. The Global Trade Liquidity Programme would combine a US$1 billion investment from the World Bank with financing from governments and regional development banks, he said. – AFP

recession by the fourth quarter of this year with the support from speedy implementation of fiscal stimulus package. – Bernama

Parts firms secure RM20mil in sales KUALA LUMPUR: Malaysian motor vehicle parts and component companies recorded actual sales of RM20.62 million with an additional RM89.38 million in potential sales at the Incoming Buying Mission held last Wednesday. In a statement here yesterday the Malaysia External Trade Development Corp (Matrade) said the event, held in

conjunction with the Automechanika Malaysia 2009, attracted 35 foreign companies with 63 representatives from 14 countries, including the US, UK, United Arab Emirates, Saudi Arabia, Columbia, Egypt, China, Laos, Algeria, Singapore, Thailand, the Philippines and Vietnam. Matrade said a total of 75 Malaysian companies registered with the corporation for the pre-scheduled meetings during the event. It said the products of interest included shock absorbers, front and rear axles, truck parts, brake systems suspension systems, automotive rubber parts, batteries, car care products, car mats, timing belts and radiators.