16 œ theSun | THURSDAY MARCH 12 2009

business

850.37  4.88
T 7,376.12 S
321.14
KLCI
STI 1,505.51 S
19.76
Nikkei
TSEC 4,759.96 S
88.94
KL market summary
Hang Seng 11,930.66 236.61
S KOSPI 1,127.51 S
25.31 MARCH 11, 2009
SCI 2,139.03 T
19.54 S&P/ASX200 3,244.40 S
59.90 INDICES CHANGE
FBMEMAS 5,524.32 -41.49
COMPOSITE 850.37 -4.88

Malaysia’s capital market

INDUSTRIAL 2,059.66 +2.81
CONSUMER PROD 279.62 +0.339
INDUSTRIAL PROD 64.53 -0.29
CONSTRUCTION 162.57 +0.14
TRADING SERVICES 113.50 -0.36
FINANCE 6,274.10 -88.35
PROPERTIES 507.91 -4.41
PLANTATIONS 4,475.60 -20.92

fundamentally strong, says SC

MINING 5,921.94 UNCH
FBMSHA 5,945.57 -23.63
FBM2BRD 3,874.90 -42.23
TECHNOLOGY 11.81 +0.05

KUALA LUMPUR: Malaysia’s
capital market is fundamentally
and prudentially stronger than
during the 1997/98 financial
crisis, according to the Securi-
ties Commission (SC).
The market’s exposure to the
current global financial turmoil is
indirect, the commission said in
its Annual Report 2008 released
yesterday.
The corporate sector has
managed capital more prudently
and returned them to sharehold-
ers, resulting in the Malaysian
market having among the high-
est dividend yields in the region,
the SC said. “Companies are also
less geared and less reliant on
foreign borrowings than before,”
it said.
Domestic market intermedi-
aries are now more capitalised
and thus in a stronger position
to deal with external shocks,
and have strengthened risk
management and prudential
frameworks, the SC said.
In addition, market safety
nets are in place to ensure
orderly adjustments to market
disturbances, it said.
These include explicit and
transparent rules on market-
wide trading halts, regulated
short-selling and enhanced
market transparency in relation
to trading.
SC said Malaysia has ample
liquidity in the domestic financial
system to facilitate the orderly
functioning of economic and
financing activities. The country
also guarantees 100% of bank
deposit until 2010, it said.
However, the SC said that
continued uncertainties in the
financial market and a slow
economic recovery process
could have a marked effect on
the business environment for
Malaysia’s corporate and finan-
cial sectors.
It said the corporate sector
TURNOVER VALUE
375.129mil RM552.665mil
might see a slowdown in ex-
ports and domestic sales, slower
From left:
earnings growth and financing
difficulties.
Last year, the primary
Malaysia
Airports Prices close easier
Holdings
market for corporate credit
Berhad SHARE prices on Bursa Malaysia closed easier
remained active with the value yesterday, erasing earlier gains with profit-tak-
managing
of corporate bonds issued rising ing activities seen especially among blue chips
director
to RM49.1 billion from RM45.2 and index-linked counters, dealers said.
Datuk Seri
billion in 2007. The KLCI eased 4.88 points or 0.571% to
Bashir
The Malaysian Islamic 850.37 after opening 5.31 points higher at
Ahmad Abdul
capital market also proved to 860.56.
Majid, Surin,
be relatively resilient with 47 Dealers said activity on the local bourse was
Kalimullah
sukuk issues worth RM43.2 higher in the morning session, boosted by the
and Azran
billion approved by the SC last RM60 billion stimulus package announced by
at the
year, which accounted for 31% the government on Tuesday.
ceremony
of all corporate bonds approved. However, the market failed to sustain its
marking the
– Bernama performance at the close as investors were
inaugural
AirAsia X reluctant to hold fresh positions given the
flight from KL volatility in it, they added.

AirAsia X takes off from KL to London
KUALA LUMPUR: Low-cost carrier
AirAsia Bhd is looking to continental
Europe for its second European
destination after London, its chief
executive officer Datuk Seri Tony
Fernandes told CNN in an interview
in the British capital.
Fernandes, who is in London to
receive the inaugural AirAsia X flight
from Kuala Lumpur to London at Stan-
sted Airport outside the city, however,
said he did not identify the city during
the interview by well-known CNN
journalist Richard Quest.
Meanwhile, AirAsia X finally took
off for London from KL with 286 pas-
sengers on board yesterday, after an
almost two-year delay.
AirAsia X, which operates the
to London. “The challenging external environment
means equity markets will see continued
volatility, and blue chips, especially finance and
sector, is an affiliate of AirAsia plantation counters succumb to selling pres-
Bhd, the parent company. sure,” a dealer said.
The destination was first an- The dealer also said the depressed market
nounced in January 2007 and was sentiment is likely to limit any upside, adding
targeted to begin in June the same that the immediate resistance barrier is likely
year but was deferred due to to be at the 800-point level and support at the
various reasons including higher 850-point today.
leasing cost. Decliners led advancers by 296 to 199, 220
Ushering in the celebrations counters were unchanged and 552 untraded
before the newly-acquired Airbus while 52 others were suspended.
A340-300 took off at 9am from the As for the actives, Resorts World rose a sen
Low Cost Carrier Terminal (LCCT) to RM1.99, Gamuda added three sen to RM1.90
in Sepang was AirAsia X chairman and AirAsia increased two sen to 94 sen.
Datuk Seri Kalimullah Hassan, chief Among the heavyweights, Sime Darby,
executive officer Azran Osman-Rani, Petronas Gas and PLUS Expressway were
Asean secretary-general Dr Surin flat at RM5.55, RM9.75 and RM2.90 respec-
Pitsuwan and British High Commis- tively while DiGi rose 10 sen to RM21.10 and
sioner to Malaysia Boyd McCleary. Malaysia Airport added three sen to RM2.44.
– Bernama – Bernama

Hauliers: No more (business operation renewable

briefs discounts, rebates

New LCCT ready
by H2 2011: Bashir
KUALA LUMPUR: The new
Low Cost Carrier Terminal
(LCCT) is slated for completion
by the second half of 2011,
Malaysia Airports Holdings
Bhd (MAHB) managing direc-
tor and chief executive officer
Datuk Seri Bashir Ahmad said
yesterday.
He said the new LCCT is
expected to handle 30 million
passengers a year vis-a-vis 15
million currently.
“We’ve found the loca-
tion and will be announcing
it at the right time. It will be
near the main terminal. It’s a
very good location. The new
terminal should be ready by
the second half of 2011,” he
told reporters after seeing off
AirAsia X’s inaugural Kuala
Lumpur- London flight at the
LCCT in Sepang.
The government has turned
down AirAsia’s initial plan to
build a RM1.6 billion LCCT in
Labu, Negri Sembilan, and in-
stead MAHB was tasked with
building a new LCCT located
near the present terminal at
KLIA in Sepang in consulta-
tions with AirAsia. – Bernama
SEBERANG PERAI: Hauli-
ers will no longer offer
discounts and rebates for
haulage services to custom-
ers in the northern region
from next Monday.
The Association of
Malaysian Hauliers (AMH)
northern region chairman R.
Amaiappan said the decision
was made due to the recent
increase in the cost of run-
ning haulage activities.
He said operators face
more expensive fuel, tyres,
repair and maintenance,
insurance, wages, training,
driver incentive and other
variable costs.
He said the AMH had pre-
viously offered up to 55%
discounts for customers in
the northern region.
He said operational costs
have increased by 35% since
last November, and haulage
activities in the northern re-
gion have suffered losses of
about 20% last year due to
the economic slowdown.
Finland’s Neste to
buy more palm oil
KUALA LUMPUR: Finland-
based Neste Oil Corporation
plans to buy about 250,000
tonnes of palm oil from Malay-
sia this year, its vice-president
fuels) Risto Karppinen said
yesterday. He said this was
an increase from the 160,000
tonnes of palm oil bought by
the refining and marketing
company last year.
“We plan to buy more from
Malaysia due to its sustainable
feedstock. As a member of
Roundtable on Sustainable Palm
Oil (RSPO), Neste Oil strongly
supports the RSPO certification
process,” Karppinen said.
The RSPO-certified palm oil
meets the European sustain-
ability requirement, which is
the company’s main focus of
operations, he said on the side-
lines of the Palm and Lauric Oil
Conference here. – Bernama
“Foreign share-
holders to stay’
KUALA LUMPUR: Foreign
shareholders are expected
to remain in the local market
due to its stability despite
the ongoing global financial
uncertainty, Securities Com-
mission (SC) market super-
vision executive director
Datuk Ranjit Ajit Singh said
yesterday.
He said the increase
in the sales of shares by
foreigners was typical of a
market where there was a
lot of deleveraging and repa-
triation of funds, especially in
times like this. – Bernama