theSun | TUESDAY NOVEMBER 3 2009 15

business KLCI
STI
1,241.76
2,645.43
1.47
5.70
Nikkei
TSEC
9,802.95
7,335.18
237.71
4.90
Hang Seng 21,620.19 132.68 KOSPI 1,559.09 21.60 KLCI
SCI 3,076.65 80.80 S&P/ASX200 4,540.40 102.80 Points

market summary NOV 2, 2009

KL shares close easier INDICES

FBMEMAS
CHANGE
8,321.88 -14.85
SHARE prices on Bursa Malaysia closed easier international as investors are hunting for good FBM-KLCI 1,241.76 -1.47
yesterday as market players took cue from a shares,” he said. INDUSTRIAL 2,666.52 -1.43
weaker Wall Street last Friday, dealers said. TA Securities in a research note yesterday said CONSUMER 365.98 +0.72
The FBM KLCI declined 1.47 points, or 0.118%, the upcoming listing of Maxis on Nov 19 is another INDUSTRIAL 92.72 -0.27
CONSTRUCTION 232.10 -0.54
to close at 1,241.76, dragged down by Genting, index catalyst although the Initial Public Offer-
RHB Capital, AMMB Holdings and Sime Darby. ing appears pricey as market is likely to attach a
TRADING SERVICES 160.01 -0.42 EXCHANGE RATES Nov 2, 2009
FINANCE 10,526.79 -8.38
The FBM KLCI had opened 5.06 points lower premium to this quality stock. PROPERTIES 791.57 -1.13
at 1,238.17. Genting fell nine sen to RM7.15, It said corporate results reporting season will PLANTATIONS 6,071.86 -16.22 Foreign currency Bank sell Bank buy Bank buy
RHB Capital declined 14 sen to RM5.25, AMMB enter its final leg in November and could act as a MINING 308.02 -2.03 TT/OD TT OD
Holdings decreased nine sen to RM4.64 and Sime strong support for any immediate term correction FBMSHA 8,397.71 -16.04 1 US DOLLAR 3.4655 3.4005 3.3905
Darby lost four sen to RM8.85. as earnings are expected to be better on quarter- FBMACE 4,300.14 -5.55
TECHNOLOGY 17.58 +0.41 1 AUSTRALIAN DOLLAR 3.1370 3.0430 3.0270
Despite the current downtrend, a dealer said on-quarter basis.
1 BRUNEI DOLLAR 2.4780 2.4180 2.4100
the upcoming listing of Maxis is likely to provide Losers led gainers by 411 to 242 while 212 TURNOVER VALUE
the much need catalyst for the local bourse. counters were unchanged and 408 untraded. 1 CANADIAN DOLLAR 3.2150 3.1360 3.1240
1.074bil RM1.142bil
“It will not only attract local investors but also – Bernama 1 EURO 5.1060 5.0020 4.9820
1 NEW ZEALAND DOLLAR 2.5180 2.4060 2.3900
1 PAPUA N GUINEA KINA 1.4490 1.1910 1.1750
1 SINGAPORE DOLLAR 2.4775 2.4180 2.4100

US lender CIT files

1 STERLING POUND 5.6990 5.5830 5.5630
1 SWISS FRANC 3.3890 3.3060 3.2910
100 ARAB EMIRATES DIRHAM 96.0200 90.9300 90.7300
100 BANGLADESH TAKA 5.1500 4.7660 4.5660
100 CHINESE RENMINBI N/A N/A N/A
100 DANISH KRONE 70.7900 65.0400 64.8400

for bankruptcy
WASHINGTON: CIT Group, assets of US$71 billion
100 HONGKONG DOLLAR
100 INDIAN RUPEE
100 INDONESIAN RUPIAH
100 JAPANESE YEN
100 NEW TAIWAN DOLLAR
100 NORWEGIAN KRONE
100 PAKISTAN RUPEE
45.5000
7.6500
0.0376
3.8640
N/A
62.4300
4.2400
43.0900
7.0200
0.0330
3.7700
N/A
57.3600
3.9700
42.8900
6.8200
0.0280
3.7600
N/A
57.1600
3.7700
one of the largest small-busi- and liabilities of nearly
ness lenders in the United US$65 billion, making the 100 PHILIPPINE PESO 7.4300 6.9900 6.7900
States, has filed for bankrupt- bankruptcy the fifth larg- 100 QATAR RIYAL 96.6400 91.9200 91.7200
cy, with its board approving a est in US history, behind 100 SAUDI RIYAL 93.8300 89.2600 89.0600
“prepackaged” restructuring Lehman Brothers, Wash- 100 SOUTH AFRICAN RAND 44.4100 40.8300 40.6300
plan to shed US$10 billion ington Mutual, WorldCom 100 SRI LANKA RUPEE 3.1200 2.8600 2.6600
(RM34 billion) in debt. and General Motors.
100 SWEDISH KRONA 50.7200 46.1300 45.9300
After being rescued from Founded in 1908, CIT
almost certain collapse in is a Fortune 500 company 100 THAI BAHT 11.1100 9.4100 9.0100
Source: Malayan Banking Berhad/Bernama
July following a US govern- that has emerged as the Benitez
ment rejection of a bailout largest lender to the US must not
plea, the company had strug- retail sector, although
overlook
Global crisis hitting IT
gled to stay afloat, receiving it also operates in the
an emergency loan of US$4.5 aeronautics, defense and clear and spending: Microsoft chief
billion as recently as Oct 28. rail transport sectors, as SEOUL: Companies worldwide are slashing spending on
But when a comprehen- well as with technology
present information technology because of the global downturn
sive debt-exchange plan giants Dell, Microsoft and danger and will have to learn to do more with less, Microsoft
failed last month, the board Toshiba. pg 39 chief executive Steve Ballmer said yesterday.
of the company, which ran Its bankruptcy high- Ballmer, on a visit to South Korea to promote the
into financial problems after lights the precarious newly-released Windows 7 system, said IT spending rep-
a home mortgage meltdown condition of some US resents about half of all capital expenditure in developed
plunged the country into its financial giants as the countries such as the United States and South Korea.
worst crisis in decades, had country emerges from “With capital more scarce, we know IT budgets are
begun reorganising its capital the deepest recession in more scarce,” Ballmer told chief information officers
structure ahead of a possible years, enhance its capital ratios and decades. from local businesses. “There is going to be pressure in
bankruptcy. accelerate its return to profitability.” The company’s collapse, econo- businesses to drive for a new level of efficiency.”
“With the overwhelming support of But not all experts shared the com- mists have said, would be a sharp Ballmer said the global economy went through a set
its debt-holders, the board of directors pany’s confidence. blow to an economy struggling to get of “once-in-a-lifetime” changes last year. – AFP
voted to proceed with the prepack- “There’s no guarantee,” Scott Peltz, back on its feet.
aged plan of reorganisation for CIT managing director of the corporate re- CIT Group chairman and chief ex-
Group Inc and a subsidiary that will structuring group at RSM McGladrey ecutive Jeffrey Peek, who has already
restructure the company’s debt and told The Washington Post about the announced he is stepping down at the
streamline its capital structure,” the prospects of CIT’s recovery. end of the year, said the plan would
company said in a statement after the He said it would be crucial for allow its subsidiaries, including CIT
board met on Sunday. the restructured company to earn an Bank in Utah state, to continue opera-
CIT aims to emerge from court investment grade rating. tions through the reorganisation.
protection by the end of the year, it “Without it, they’d still have an In December, CIT Group received
said. unworkable capital structure,” Peltz US$2.3 billion from the US Treasury as
“Under the plan, CIT expects to is quoted by The Post as saying. part of an emergency rescue package,
reduce total debt by approximately In the voluntary Chapter 11 fil- but the taxpayer money is expected
US$10 billion, significantly reduce ing with the US Bankruptcy Court to be wiped out in the restructuring.
its liquidity needs over the next three in Manhattan, CIT reported total – AFP

Asian markets tumble on Wall Street loss, US bank failure

HONGKONG: Asian shares
were hit yesterday as a dive
on Wall Street at the end of the
week was compounded by the
bankruptcy of US bank CIT,
stoking further fears over the
strength of the global economic
recovery.
Dealers brushed aside last
week’s US data showing the
world’s largest economy had
moved out of recession and in-
stead focused New York’s losses,
where concerns over the finan-
cial sector were compounded by
profit-taking.
Tokyo ended 2.31% off and
Sydney dropped 2.21%, while
Hongkong was 1.72% lower at
noon. Seoul closed 1.37% down.
However, there was a 0.49%
gain midday in Shanghai, where
earlier falls were wiped away
by figures showing an improve-
ment in China’s manufacturing
sector.
Wall Street plummeted
2.51% on Friday as confidence
whipped up by the gross do-
mestic product data was wiped
out by worries that CIT Group,
one of the largest small-business
lenders in the United States, was
in trouble.
Those fears were realised on
Sunday when the bank filed for
Chapter 11 bankruptcy with its
board approving a “prepack-
aged” restructuring plan to shed
US$10 billion (RM34 billion) in
debt.
The 101-year-old firm had
struggled to stay afloat in the
wake of the sub-prime mortgage
debacle despite being rescued
by a government bailout in July
and receiving an emergency
loan as recently as Oct 28.
In its filing to the US Bank-
ruptcy Court in Manhattan, CIT
reported total assets of US$71
billion and liabilities of nearly
US$65 billion, making it the
fifth largest bankruptcy in US
history.
It said it aims to emerge from
court protection by the end of
the year. The move also sparked
fears over the health of the US
financial system as the economy
struggles out of crisis.
Dealers were also moved to
take profits after the big gains on
Friday, which capped a week of
losses after the US announced
its economy had grown a better-
than-expected 3.5% in the third
quarter.
However, many analysts
pointed out that the big rise was
helped by the government’s
enormous stimulus measures
including the highly successful
“cash for clunkers” programme
to boost the ailing car industry.
Markets were also nervous
ahead of monetary policy deci-
sions due this week in the United
States, the Eurozone, Britain and
Australia, as well as key US jobs
data on Friday.
Despite the losses, market-
watchers said markets could
handle the bad news. – AFP