18 theSun | MONDAY NOVEMBER 17 2008

business news

KL market summary
Shares prices likely to stay range-bound NOVEMBER 14, 2008

SHARE prices on Bursa Malaysia underpriced stocks up for grabs. The analyst said the move would 881.65. INDICES CHANGE
are likely to stay range-bound again “The announcement of stimulus likely boost related industries in the The Industrial Index edged up FBMEMAS 5809.26 2.76
this week as investors are expected package for private sector should coming weeks. 0.74 point to 2,118.25, the Finance COMPOSITE 881.65 1.06
to be wary of the market despite spur interest among businessmen He said the benchmark KLCI is Index lost 164.51 points to 6,760.93 INDUSTRIAL 2118.25 -3.86
the stimulus package announced by to be more proactive amid global expected to trade between the 850 while the Plantation Index jumped CONSUMER PROD 274.45 0.54
INDUSTRIAL PROD 70.05 -0.52
the government, analysts said. financial crisis,” he said. and 910 this week. 61.99 points to 3,872.82. CONSTRUCTION 157.82 -0.78
They said despite an oversold The government on Friday an- “Interests in heavyweights, The FBMEmas went down by TRADING/SERVICES 123.56 -0.16
market, which offered opportuni- nounced pre-emptive measures particularly plantation and financial 69 points to 5,805.39, the FBM30 FINANCE 6760.93 43.32
ties in terms of cheaper quality for the private sector to cushion and banking stocks, are expected,” dropped 94.88 points to 5,696.12, PROPERTY 530.25 -1.02
stocks, investors were expected the impact of the global economic he said. FBM2BRD went up 78.64 points PLANTATION 3872.84 52.81
to stay cautious and wait for more slowdown on Malaysia’s trade and For the whole week just ended, to 4,449.31 and the FBM-MDQ MINING 251.28 0.00
FBMSHA 6014.07 -8.01
positive signals from the US as well industry sectors. market was traded range-bound as increased 22.77 points to 3,489.98.
FBM2BRD 4485.91 44.84
as Malaysian government’s before It included an automatic investors remained cautious. Some, Total volume for the week TECHNOLOGY 14.79 0.08
taking any action. issuance of manufacturing licences however, took the opportunity to eased to 4.099 billion shares worth
An analyst said some bargain and full import duty exemption on buy cheap quality stocks. RM4.759 billion from 4.456 billion TURNOVER VALUE
hunting is expected this week as raw materials and intermediate On a Friday-to-Friday basis, the shares worth RM5.504 billion the 718.741mil 845.674mil
Bursa Malaysia has plenty of quality goods. KLCI was lower by 12.30 points at previous Friday. – Bernama

Japan may avoid recession,
for now, say analysts
TOKYO: Japan probably avoided a
recession in the third quarter of this year, but
Asia’s biggest economy looks set to shrink
in 2009 as the financial crisis bites, analysts
predict.
Gross domestic product figures due today
are expected to show tepid growth of 0.1%
in the three months to September, after a
contraction of 0.7% the previous quarter,
according to market forecasts.
A consumption boost thanks to the Beijing
Olympics and a hot summer, together with
a rebound in housing investment and a rise
in exports, are expected to have allowed
Asia’s largest economy to crawl ahead in the
quarter.
“This does not, however, mean the
Japanese economy has found breathing
space,” said Kyohei Morita, chief Japan
economist at Barclays Capital.
Instead, the modest third quarter growth
“should probably be viewed as the calm
before the storm,” he warned.
And some forecasters think Japan is
already in a technical recession, which is
usually defined as two consecutive quarters
of economic contraction.
The Organisation for Economic
Cooperation and Development estimated
last week that Japan’s economy shrank
0.4% in the third quarter, and predicted a 1%
contraction in the fourth quarter.
That would put Japan alongside Germany
and Italy on the list of Group of Eight major
economies in recession.
Official figures showed Friday that the
eurozone as a whole is also in recession,
while the US and British economies shrank
in the third quarter.
Japan has enjoyed brisk exports in recent
years, which have helped the economy to
recover from recession in the 1990s.
But, provisional figures showed exports
plunged almost 10% in the first 20 days of
October, in stark contrast to a small rise in
September, the finance ministry said.
Morgan Stanley analysts expect Japan’s
economy to contract 1.1% next year, with a
recovery now unlikely until the first quarter
of 2010.
“Growth in 2009 will inevitably take a
bigger hit as financial market turbulence
loops back into the real economy,” they said.
But action by global policymakers to
tackle the financial crisis “should make 2010
a year of modest global healing,” they added.
After suffering a series of on-off recessions
in the 1990s following the bursting of the
economic bubble, Japan had been slowly
recovering on the back of brisk exports and
business investment.
Corporate profits, however, are now
sliding as the country teeters on the verge of
recession and exports suffer from the global
economic slowdown.
But at the same time Japan is not
suffering from the bursting of a credit bubble
like the United States and Britain are.
Japan’s own economic bubble burst in
the 1990s, ushering in a long slump that
forced banks and manufacturers to put their
balance sheets in order. As a result, they are
in a better shape to cope with the current
downturn.
“Unlike many other developed
countries, it looks like Japan is facing a
fairly straightforward recession driven by
an external demand shock,” said Richard
Jerram, chief Japan economist at Macquarie
Securities.
Branding
is about
belonging:
Olins
pg 20
“The basic problem is that it is heading
for a sharp drop in exports as demand in
most external markets struggles. In turn this
will push down industrial production and
lead to a fall in profit margins, as well as
knock-on damage to parts of the domestic
economy.” – AFP
Danga Bay
to undergo
RM350m
upgrading
JOHOR BARU: Danga Bay Sdn Bhd (DBSB),
which owns the waterfront land in the
Iskandar Malaysia here, will launch a RM350
million upgrading programme to introduce
new attractions in Danga Bay.
DBSB chief executive officer, Datuk Lim
Kang Hoo said the programme, under phase
one of Danga Bay development masterplan,
would start next year.
“The projects are scheduled to be fully
operational by 2011.
“The programme will include building
a marina club, Bay Leaf Convention &
Exhibition Centre, multi-storey car park,
budget hotel and office block,” he told a
media briefing after an aerial tour of the area
here on Saturday.
Lim said the marina club, which would be
extended by 500m with berths for 250 yachts,
is expected to be ready by mid-2009.
He said the construction of the RM15
million convention and exhibition centre has
started. “It will have 6,038.70 sq m of floor
space with standing room for 8,000 people
and can accommodate 3,500 people for
banquets,” he said.
Lim said a 120-room budget hotel would
be built on the site of the present Celebration
Square and would incorporate a five-storey
car park with about 1,000 parking bays.
“This will replace the existing car park
which will give way for the RM1.3 billion
six-lane coastal highway from the Custom,
Immigration and Quarantine Complex to
Danga Bay and Nusajaya.
He said an office tower to house DBSBs
corporate office would also be built in the
vicinity.
Lim said these new projects were designed
to complement the RM900 million Danga
Island luxury villas, also in Danga Bay, that
recorded sales of RM780 million up to last
month. – Bernama

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