theSun | THURSDAY MARCH 26 2009 15

business KLCI
STI
878.81
1,691.68
0.89
14.66
Nikkei
TSEC
8,479.99
5,346.38
8.31
104.20
Hang Seng 13,622.11 288.23 KOSPI 1,229.02 7.32
SCI 2,291.56 46.87 S&P/ASX200 3,609.30 29.30

market summary

Japanese exports
MARCH 25, 2009

INDICES CHANGE
FBMEMAS 5,723.25 -4.28
COMPOSITE 878.81 +0.89
INDUSTRIAL 2,125.62 +18.91
CONSUMER PROD 284.72 +1.30

suffer record plunge

TOKYO: Japan announced yester-
day a record fall in exports, keeping
its economy on course for the worst
recession since World War II as the
global downturn pummels demand
for cars and hi-tech goods.
Exports roughly halved in
February compared with a year
earlier, making it likely the world’s
second-largest economy will log an-
other sharp contraction in the current
quarter.
Japan’s heavy dependence on
foreign markets means its economy
has been one of the worst affected by
the global economic downturn, and
analysts see little prospect of a quick
turnaround.
“Japanese exports are unlikely
to recover (soon), and it is difficult
to foresee a rapid recovery unless
the global financial crisis eases,”
said Commerzbank analyst Ryohei
Muramatsu.
He warned Japan’s economy looks
unlikely to improve until demand
from the US and China picks up.
“As the US is expected to be the
first one out of the crisis, other econo-
mies will recover six months later,
including Japan,” Muramatsu said.
Japanese exports plunged 49.4%
last month from a year earlier, sur-
INDUSTRIAL PROD 66.08 +0.08
CONSTRUCTION 167.85 +1.74
TRADING SERVICES 116.88 +0.13
FINANCE 6,540.63 +1.55
PROPERTIES 508.78 -0.85
PLANTATIONS 4,563.39 -27.00
MINING 231.01 UNCH
FBMSHA 6,073.33 -17.83
passing January’s slump of 45.7%, the FBM2BRD 3,887.00 -13.49
finance ministry reported. TECHNOLOGY 11.24 -0.20
Shipments to the US and Europe
TURNOVER VALUE
more than halved while demand
from the once-booming Chinese 362.995mil RM671,501mil
economy dropped almost 40%. Japanese
Japan’s trade surplus plunged
91.2% in February from a year earlier
exports are Prices end mixed
to ¥82.35 billion (RM3.11 billion), al- unlikely to SHARE prices on Bursa Malaysia
though that was better than a record recover ended mixed yesterday, with the key
deficit logged in January, the govern- (soon), and index in positive territory supported
ment said. it is difficult by last-minute buying on selected
The Japanese economy logged its blue-chips, dealers said. The KLCI
worst performance in almost 35 years to foresee added 0.89 point to 878.81.
in the last quarter of 2008, contracting a rapid Dealers said the market started the
at an annualised pace of 12.1%. recovery day on negative territory as investors
The economy is likely to shrink at unless trimmed their positions following the
a slightly faster pace in the current the global overnight fall on Wall Street.
quarter and it will remain weak for A dealer said, however, the senti-
some time to come, said Hiroshi financial ment was positive due to ongoing
Shiraishi, an economist at BNP Pari- crisis Umno general assembly which he
bas. eases.” hoped some positive news would
“The rate of contraction should – Ryohei emerge to boost the market.
ease fairly sharply from the second Muramatsu “Profit-taking was seen on planta-
quarter onwards” but the economy Commerzbank tion and banking-related stocks in the
will remain weak for some time to analyst morning. However, last-minute buying
come, he said. had pushed the KLCI to close the day
The economy is also bracing in positive territory,” a dealer said.
for another bout of deflation. The Among the active stocks, TM In-
government may report on Friday ternational fell 32 sen to RM2.29 after
the first year-on-year decline in core it announced the price of the rights
consumer prices since September issue. – Bernama
2007, analysts said. – AFP

IMF reforms lending, creates new credit line

WASHINGTON: The International
Monetary Fund on Tuesday over-
hauled the way it lends to member
countries in the face of a worsening
global economic crisis and created
a new line of credit for well-run
emerging-market economies.
Senior IMF officials said the
move represented a turning point
in the way the Fund supports
countries and will make it easier
for emerging market economies to
seek help from the IMF to weather
the global downturn.
The new flexible credit line
will give countries that meet a set
of conditions access to a pool of
money they can either tap imme-
diately or keep as a guarantee in
case global conditions worsen.
It replaces a short-term liquid-
ity facility, approved by the IMF in
October, that attracted no takers
because countries said funding
was too small and repayment
schedules too rigid.
“These reforms represent a sig-
nificant change in the way the Fund
can help its member countries,
which is especially needed at this
time of global crisis,” IMF managing
director Dominique Strauss-Kahn
said in a statement.
“More flexibility in our lending
along with streamlined conditional-
ity will help us respond effectively
to the various needs of members.
This, in turn, will help them to
weather the crisis and return to
sustainable growth,” he added.
News of new IMF lending
instruments to help emerging
economies helped buoy improved
investor sentiment in Latin Ameri-
can stock markets, but did not stop
most currencies in the region from
weakening.
Goldman Sachs’ senior emerg-
ing markets economist, Alberto
Ramos, said in a research note on
Tuesday that the new flexible credit
line was a “major improvement”
over the more limited short-term
liquidity facility.
Ramos said that in Latin
America, countries such as Brazil,
Chile, Colombia, Mexico and Peru
would probably qualify for the
IMF credit line, while others like
Argentina, Ecuador and Venezuela
would not.
The changes in IMF lending
come as the global institution
projects the world economy will
contract this year for the first time
since World War Two, by 0.5 to 1%,
and risks are rising in emerging and
developing countries as demand
slumps and credit dries up.
Under the changes, the IMF
said, once the emerging econo-
mies have qualified for the credit
line, there would be “no hard cap”
on the amount a country could
borrow, and repayments would be
in three to five years.
IMF first deputy managing
director John Lipsky told Reuters
Financial Television many countries,
even those with good track records,
were having a hard time accessing
financing, and the new credit line
would ensure they are not forced
into a serious downturn.
He said changes in lending
instruments for low-income coun-
tries will be dealt with separately
“in coming months.” – Reuters
Millions of Thais prepare for
stimulus handouts
BANGKOK: Thailand’s government prepared yesterday to
give 2,000-baht (RM220) handouts to millions of people
as part of a stimulus programme aimed at fighting the
effects of the global slowdown.
Social security offices were opening at 8am (same
time in Malaysia) across the country today to hand out
the so-called “gift cheques”, while shops and businesses
have launched promotions to entice consumers.
Around 7.5 million people have registered for the
handouts. Only people with a monthly salary of 15,000
baht (RM1,650) or less and who are registered for social
security support are eligible.
“The cheque will help people’s purchasing power,”
Prime Minister Abhisit Vejjajiva told reporters. “This is the
hardest period of time, I hope it will help the economy.”
The handouts are part of a US$3.35 billion (RM12.4 billion)
stimulus package announced by Abhisit in January. – AFP