theSun | FRIDAY MARCH 20 2009
business KLCI
STI
Hang Seng
SSE
Fed to buy Treasuries
to boost economy
WASHINGTON: The US Federal Reserve said
it will start large-scale buying of government
debt as part of an extra US$1 trillion (RM3.7
trillion) injection into the ailing economy,
sparking a rally in government bonds and
trouncing the dollar.
The Fed announced on Wednesday it
would buy up to US$300 billion (RM1.11
trillion) of longer term US government
debt over the next six months in the first
operation on such a scale since the 1960s.
It also would expand an existing scheme to
buy mortgage-related securities by another
US$850 billion (RM3.145 trillion), to US$1.45
trillion (RM5.37 trillion) this year.
The move stunned markets as few Fed
watchers had expected it to follow Japan
and Britain in pumping money directly into
the economy so soon.
The news drove US home mortgage rates
towards record lows and Treasury bond
yields dived the most in one day since the
1987 stock market crash.
The Fed’s move to add direct govern-
ment bond buying to its expanding arsenal
of unconventional weapons inspired hopes
that the aggressive action will help pull the
US economy out of a crippling recession and
Goodyear in Fortune’s most
admired firms list
KUALA LUMPUR: The Goodyear Tire & Rub-
ber Co has once again been recognised as
one of the most admired companies in the
world by Fortune magazine.
Among the companies in Fortune’s World’s
Most Admired Companies’ Motor Vehicle Parts
category, Goodyear was the highest-ranked
tyre company, the No. 1 ranked US-based
company and ranked No. 2 overall.
In the global Motor Vehicle Parts category,
Goodyear was ranked either No. 1 or No. 2 in
five of the nine key attributes measured.
Goodyear was top-ranked in Use of Corpo-
rate Assets and Social Responsibility, and ranked
second in Innovation, Quality of Products and
Services and Global Competitiveness.
Among US companies in the global cat-
egory, Goodyear was ranked No. 1 or No. 2 in
all nine attributes.
15
852.18
1,584.86
4.22
8.92
Nikkei
TSEC
7,945.96
5,035.93
-26.21
-11.61
13,130.92 13.75 KOSPI 1,161.81 -8.14
2,265.76 42.03 S&P/ASX200 3,480.20 33.90
KL market summary
INDICES
FBMEMAS
COMPOSITE
5,541.92
852.18
MARCH 19, 2009
CHANGE
+25.64
+4.22
INDUSTRIAL 2,054.34 -3.56
CONSUMER PROD 280.33 +0.55
INDUSTRIAL PROD 64.39 +0.10
CONSTRUCTION 163.35 -0.13
TRADING SERVICES 113.55 +0.73
FINANCE 6,315.45 +15.35
PROPERTIES 500.28 +1.85
PLANTATIONS 4,386.47 +9.45
lifted Asian stock markets outside Japan to MINING 241.15 unch
a five-week high. FBMSHA 5,904.28 +11.19
But the dollar suffered its biggest one-day FBM2BRD 3,835.45 +14.92
drop since 1985 against a basket of main TECHNOLOGY 11.59 +0.08
currencies, stung by fears that by effectively
printing money, the Fed would create an over- TURNOVER VALUE
supply of the world’s main reserve currency. 303.824mil RM543.544mil
Some economists said that even at such
a hefty cost the Fed may not get what it was
hoping for.
“Will the next trillion dollar injection gain
any more traction? Probably not. Banks
CI stays up
don’t want to lend and borrowers don’t want SHARE prices on Bursa Malaysia closed mixed
to borrow,” said economists at DBS Bank in with key heavyweights remaining up boosted
Singapore. by the overnight rally on Wall Street, dealers
“The fact remains that expansionary said.
policy at the bottom of a cycle is like pushing The benchmark KLCI ended the day 4.22
on a string,” the bank’s research team said in points higher at 852.18, after opening 2.17
a note, stressing that fixing the ailing banks points higher at 850.13.
was necessary for recovery to take hold. A dealer said the overnight surge on Wall
The Fed’s announcement came hours Street followed the Federal Reserve’s an-
after the Bank of Japan boosted its govern- nouncement that it would inject a further US$1
ment bond purchases plan for this year trillion (RM3.7 trillion) into the economy, includ-
by nearly a third to ¥21.6 trillion (RM832.5 ing a US$300 billion (RM1.11 trillion) purchase
billion) and days after the Bank of England of long-term Treasuries.
started buying government bonds with Bursa is expected to move in line with Wall
newly created money to breathe life into the Street’s movement today.
faltering British economy. – Reuters Investors were encouraged with the posi-
tive movement on Dow Jones, which chalked
up a 90-point gain on Wednesday night.
Gainers led losers by 230 to 215 while 200
counters were unchanged, 597 untraded and
32 others suspended.
Among the actives, TMI rose eight sen to
RM2.24, Resorts increased three sen to RM1.93
The tyre maker was top-ranked in Innova- and KNM was unchanged at 35 sen.
tion, Quality of Products and Services, Use As for the heavyweights, Sime Darby closed
of Corporate Assets, Social Responsibility, five sen lower at RM5.45, Tenaga Nasional rose
Quality of Management, People Management 15 sen to RM6.20, Maybank advanced 18 sen
and Global Competitiveness. to RM4.26 and TM fell two sen to RM3.50.
In a statement here yesterday, Goodyear – Bernama
chairman/chief executive officer Robert J.
Keegan said the global recognition by industry
peers was something for which all Goodyear
associates could be proud of.
In Malaysia, Goodyear is the leading brand of
EU-US rift on crisis ‘dangerous’: Merkel
choice for consumers and companies such as BERLIN: Differing approaches by fight the recession, Merkel said: “I London” where a crunch meeting
Mercedes Benz, Volvo, Honda, Mazda, Toyota, the European Union and the United would find it extremely dangerous of the Group of 20 developed and
Nissan, Ford, Hyundai, Proton, Perodua, Naza, States to solving the global economic if countries on different sides of developing economies will take
Hino, Daihatsu, Inokom, Malaysian Truck and crisis would be “extremely danger- the Atlantic were to take different place on April 2.
Bus and Isuzu. Goodyear Malaysia Bhd is the ous,” German Chancellor Angela directions.” Merkel rejected criticism that
first Goodyear plant to be certified ISO9002 Merkel said yesterday. Speaking in the German parlia- the €81 billion (RM403.3 billion) al-
in 1992, QS9000 and ISO14001 in 2002, and Hitting back at US calls for Europe ment, Merkel added: “We need ready pumped into Europe’s largest
ISO/TS16949 certification in 2003. – Bernama to introduce heftier measures to psychologically good signals from economy was insufficient. – AFP