26 theSun | FRIDAY NOVEMBER 7 2008

business news Hang Seng

13,790.04
S&P/ASX200
4,149.7
TSEC
4,694.12
KLCI
895.95
STI
1,819.20
KOSPI
1,092.22
NIKKEI
8,899.14
1,050.12 -186.9 284.14 19.29 49.62 89.28 622.10

KL market summary

Europe set to slash rates as

NOVEMBER 6, 2008

INDICES CHANGE
FBMEMAS 5,884.74 -132.15
COMPOSITE 895.95 -19.29
INDUSTRIAL 2,132.72 -1.88
CONSUMER PROD 273.07 -0.38

economic gloom deepens

SINGAPORE/LONDON: Europe’s
top central banks were under
pressure to slash borrowing costs by
a record margin yesterday as part
of global efforts to stimulate trade
and commerce and ward off deep
recession.
Markets looked also to US
President-elect Barack Obama to name
key members of an economic team
that must tackle a crisis that originated
in the US housing market before
enveloping the financial system and
toppling major banking institutions.
The European Central Bank
and the Bank of England had been
expected to cut interest rates by 50
basis points but markets are now
pricing in bigger cuts after more
evidence the world economy is
slowing.
News of bigger-than-expected job
briefs
Microsoft M’sia to
invest RM300mil
KUALA LUMPUR: Microsoft (Malaysia)
Sdn Bhd is to invest RM300 million in the
next three years via the Microsoft BizSpark
programme to further support develop-
ment of the local software economy.
Through the programme, start-ups
and technopreneurs will have access to
RM625,000 worth of world-class tools,
technologies and market resources, said
managing director Yasmin Mahmood.
“We target 500 companies to be
equipped over the next three years.
Based on the success of our other
programmes, we estimate that these
companies will create some 5,000 new
jobs in Malaysia and generate an addi-
tional RM1 billion for the local software
economy,” she said.
Currently, 319 MSC Malaysia com-
panies are developing their products on
Microsoft Platform, contributing RM2.97
billion revenue in 2006.
Malaysia, with 10 start-ups signed
to form the pioneer batch, is the third
country picked to launch BizSpark.
She was speaking to reporters after
losses in the US, a sharp contraction in
the world services sector, steep house
price declines and a manufacturing
retreat in Britain all underscored the
global economic gloom.
Toyota Motor Corp, the world’s
biggest automaker, slashed its annual
operating profit forecast by more
than half and its shares tumbled over
10%, making it the latest casualty in
an industry hit hard by the slump.
Goldman Sachs Group Inc was
laying off 3,200 employees this week,
according to sources familiar with the
situation.
Markets buckled under the weight
of the grim data, with stocks in Tokyo
falling 6.5% and elsewhere in Asia by
more than 7%.
European stocks opened down
3% with Britain’s FTSE 100 index off
by 2% and Germany’s DAX down by
launching Microsoft BizSpark programme
and witnessing signing of the Multimedia
Development Corporation, Association of
the Computer and Multimedia Industry
Malaysia and eight industry stakehold-
ers as network partners to support the
programme. – Bernama
Moody’s: Chips down
for Asia’s gaming sector
SINGAPORE: Credit ratings firm
Moody’s said yesterday it has a
“negative” outlook for Asia’s gaming
sector in the next 12-18 months due
to the economic uncertainty.
Casino operators in Asia’s gaming
haven of Macau will be the most af-
fected, with the industry in Australia
and Malaysia also expected to be hit,
it said in a report.
“As in the US, the gaming sector
in the Asia-Pacific is facing increasing
operating pressures, which vary by
company and country,” it said.
Cutbacks in discretionary spend-
ing, intense local competition and
regulations on travel are expected to
hurt the earnings of casino operators,
Moody’s said.
“In addition to these immediate
concerns, gaming operators face the
challenge of managing large acquisi-
tions or capital expenditure in an
uncertain environment,” it said.
2.5%. Russia’s MICEX tumbled 8%,
INDUSTRIAL PROD
CONSTRUCTION
TRADING/SERVICES
FINANCE
PROPERTIES
PLANTATIONS
MINING
69.75
157.28
125.77
6,916.54
531.77
3,820.11
259.38
-0.97
-3.50
-2.21
-223.98
-11.54
-139.45
UNCH
prompting the bourse to announce that FBMSHA 6,075.26 -105.40
trade would be suspended for an hour. FBM2BRD 4,311.76 -74.65
“After the world rally on the day After the TECHNOLOGY 14.42 -0.16
of the presidential election, investors world
TURNOVER VALUE
have now shifted their focus to rally on
how fast, and how well the new the day of 489.201mil RM653.438mil
administration will address the current the (US)
economic issues,” said Yoo Soo-min,
pre-
analyst at Hyundai Securities.
Oil prices fell below US$65 sidential KL shares end lower
(RM227.50) a barrel, reflecting election, SHARE prices on Bursa Malaysia ended the day lower
expectations a global recession will investors yesterday in line with the regional fall as sentiment
severely undercut demand. weakened following Wall Street’s overnight losses,
The US Federal Reserve and central have now dealers said.
banks in Japan and China cut rates shifted At the close, the benchmark KLCI slipped to 895.95,
last week to shield their economies their down 19.29 after opening 15.19 points lower at 900.05
from the crisis that began when a US focus yesterday morning.
housing boom soured 15 months ago. Dealers said some investors took profit following
Australia kicked off this week’s
to how days of strong gains while selling was mild with key
round with a hefty 75 basis point cut. fast, and heavyweights remaining at their overnight prices.
– Reuters how well Losers led gainers by 467 to 136 while 161 counters
the new were unchanged, 570 untraded and 35 suspended.
According to a dealer, the general sentiment in the
adminis- local bourse remained intact as only the immediate
The agency said the decline in tration outlook for the local market is to be dictated by key
revenues may worsen in Macau when will overseas markets.
new casinos open in the next six to
12 months.
“In Australia, a slowing economy
address
the
The dealer said investors globally should start
realising that the liquidity from the mammoth bail-
outs, monetary stimulus and low pump prices would
has darkened the outlook for the current eventually surface and help stabilise the economies.
country’s gaming sector because economic Among volume leaders, KNM Group eased 3.5 sen
lower disposable incomes could lead issues.”
to 64 sen, Lion Industries shed five sen to 71 sen, IOI
to reduced spending at casinos,” Corp erased 16 sen to RM3.14, Evermaster perked 3.5
Moody’s said. sen to 26.5 sen and Scomi slipped 1.5 sen to 38 sen.
Malaysia’s gaming sector will also As for heavyweights, Sime Darby and MISC were
be impacted but a projected eco- flat at RM6.35 and RM8.45 respectively while Public
nomic growth of 3.5% in 2009 and the Bank dropped five sen to RM8.65, Maybank lost 35 sen
absence of local competition could to RM5.70 and Tenaga Nasional fell 15 sen to RM6.05.
support the industry, it said. – AFP – Bernama
SIA says Q2 net profit
down 36.2% UMW sees no slowdown
SINGAPORE: Singapore Airlines (SIA) Inflation in China operatioins
said yesterday its fiscal second quarter BEIJING: UMW Holdings Bhd’s business in China, a major
net profit fell 36.2% from the previous dents contributor to its oil and gas earnings, will not be affected
year and the outlook remained weak as a retirement by the global economic slowdown as it gears up for a
global economic slump escalates. plans huge pipe manufacturing plant in Qinhuangdao to be-
The airline earned S$324 million come fully operational.
(RM777.6 million) in the three months pg 28 The Chinese demand alone is filling the order book,
to September, down from S$508 million. leaving no room for exports, UMW Holdings group manag-
Analysts polled by Dow Jones Newswires ing director and chief executive officer Datuk Dr Abdul
had forecast a net profit of S$333 mil- Halim Harun said.
lion. “The new plant in Qinhuangdao is currently to supply
Revenue came in at S$4.38 billion, up the domestic market and though we have enquiries from
9.4% from the same quarter last year, overseas, we are unable to meet the demand,” he told
but expenditure surged 20.3% to S$4.15 Bernama after attending the Malaysia-China Business
billion led by higher fuel costs, SIA said in Council annual general meeting which ended on Tuesday
a statement. – AFP in Dalian.