theSun | TUESDAY JUNE 2 2009 œ 15

business KLCI
STI
1,061.80
2,380.07
17.69
50.99
Nikkei
TSEC
9,677.75
6,954.10
155.25
63.66
Hang Seng 18,893.40 722.40 KOSPI 1,415.10 19.21
SCI 2,721.28 88.35 S&P/ASX200 3,894.40 76.30

KL market summary
JUNE 1, 2009
INDICES
FBMEMAS
CHANGE
7,094.92 +110.71
Prices firmer on positive sentiments
COMPOSITE 1,061.80 +17.69 SHARE prices on Bursa Malaysia ended firmer (SGS), further spurred buying interest in the
INDUSTRIAL 2,349.10 +27.00 yesterday supported by positive sentiments stock market.
CONSUMER PROD 313.23 +7.94 in the region, with banking and plantation ITS said that exports of Malaysian palm
INDUSTRIAL PROD 84.12 +1.60 stocks leading the gains, dealers said. oil products for May rose 1.7% to 1,211,716
CONSTRUCTION 204.53 +4.31 At close, the KLCI was 17.69 points higher tonnes while SGS reported a 5.1% increase in
TRADING SERVICES 143.22 +1.37
at 1,061.80 after opening 3.51 points higher exports at 1,227,894 tonnes.
FINANCE 8,182.98 +178.49
PROPERTIES 715.82 +20.02 at 1,047.62 in the morning. “Renewed hopes that the global economy
PLANTATIONS 5,362.27 +66.50 The dealers said strong interest was seen is in recovery mode after China’s factory orders
MINING 291.81 +10.13 across all stocks, mainly in banking stocks rose in May 2009 further encouraged buying
FBMSHA 7,429.75 +88.90 on expectations that the capital market will on the local bourse,” the dealers said. EXCHANGE RATES June 1, 2009
FBM2BRD 4,571.45 - 3.32 recover amid increasing activities in bond Among the active stocks, KNM Group
TECHNOLOGY 14.64 +0.12 trading and initial public offering. increased 9.5 sen to 99 sen, Sino Hua-An Foreign currency Bank sell Bank buy Bank buy
TURNOVER VALUE
A healthy palm oil export data released International rose 7.5 sen to 52.5 sen, while TT/OD TT OD
by cargo surveyors, Intertek Testing Services Compugates lost one sen to eight sen. 1 US DOLLAR 3.5190 3.4540 3.4440
1.606bil RM1.682bil
(ITS) and Societe Generale de Surveillance – Bernama
1 AUSTRALIAN DOLLAR 2.8510 2.7170 2.7110
1 BRUNEI DOLLAR 2.4470 2.3870 2.3790
1 CANADIAN DOLLAR 3.2310 3.1520 3.1400

GM files for bankruptcy, 1 EURO

1 NEW ZEALAND DOLLAR
1 PAPUA N GUINEA KINA
1 SINGAPORE DOLLAR
1 STERLING POUND
1 SWISS FRANC
4.9780
2.2760
1.4110
2.4465
5.7050
3.2990
4.8570
2.1750
1.1810
2.3870
5.5660
3.2190
4.8370
2.1590
1.1650
2.3790
5.5460
3.2040

Chrysler sale cleared

DETROIT/WASHINGTON: General Mo-
tors Corp filed for bankruptcy yesterday,
forcing the 100-year-old automaker once
seen as a symbol of American economic
might and dynamism into a new and
uncertain era of government ownership.
The bankruptcy filing is the third-larg-
est in US history and the largest ever in
US manufacturing.
The decision to push GM into a fast-
track bankruptcy, and provide US$30 bil-
lion (RM105 billion) of additional taxpayer
funds to restructure the automaker, is a
huge gamble for the Obama administra-
tion.
But in a sign of progress in the govern-
ment’s high-stakes effort, a bankruptcy
judge approved the sale of substantially
all of US automaker Chrysler’s assets to a
group led by Italy’s Fiat SpA in an opinion
filed late on Sunday.
Chrysler’s bankruptcy, also financed
by the US Treasury, has been widely seen
as a test run for the much bigger and
more complex reorganisation of GM.
The GM plan is for a quick sale proc-
ess that would allow a much smaller GM
to emerge from court protection in as
little as 60 to 90 days.
“Now the hard part begins, which is
India offers US$500b projects to M’sian firms
KUALA LUMPUR: Infrastructure projects in
India valued at US$500 billion (RM1.75 trillion)
are available to Malaysian construction com-
panies, B.N. Reddy, counsellor (economic and
education) at the Indian High Commission,
said yesterday.
The projects identified include airports,
highways and other infrastructure project
over the next five years, he said at the Malay-
sia-India Business Conference here.
Reddy said India was also inviting Malay-
sian firms to be involved in the development
of its US$7 billion (RM24.5 billion) Dedicated
Freight Corridor.
“We expect a lot of infrastructure and
industrial projects to be developed within the
corridor,” he said.
Reddy said such collaborations would
further raise the existing synergy between
Malaysia and India, thus helping to boost
making GM and Chrysler competitive. If vided an updated target for job cuts but
100 ARAB EMIRATES DIRHAM
100 BANGLADESH TAKA
100 CHINESE RENMINBI
100 DANISH KRONE
100 HONGKONG DOLLAR
100 INDIAN RUPEE
97.5700
5.5200
N/A
68.8600
46.2000
7.7500
92.3100
5.2000
N/A
63.2400
43.7600
7.1200
92.1100
5.0000
N/A
63.0400
43.5600
6.9200
they don’t do that, then we’ll be doing had been looking to cut 21,000 factory 100 INDONESIAN RUPIAH 0.0357 0.0310 0.0260
this all over again in a few years,” said jobs from the 54,000 UAW workers it now 100 JAPANESE YEN 3.7020 3.6110 3.6010
Christopher Richter, auto analyst at CLSA employs in the US. Bidding 100 NEW TAIWAN DOLLAR N/A N/A N/A
Asia-Pacific Markets in Tokyo. The UAW would have a 17.5% stake in war 100 NORWEGIAN KRONE 57.5000 52.8300 52.6300
“The immediate implication is that the the “new GM.” The Canadian government
companies are going to get smaller and would own 12% and GM bondholders likely for 100 PAKISTAN RUPEE 4.4500 4.1600 3.9600
so market share is up for grabs, which would get 10%. golden 100 PHILIPPINE PESO 7.6200 7.1600 6.9600
means that rivals like Toyota, Honda, Officials involved in the planning for Forlan 100 QATAR RIYAL 98.1800 93.4000 93.2000
Nissan and Hyundai are going to gain GM said the White House was a “reluc- 100 SAUDI RIYAL 95.2900 90.6400 90.4400
share.” tant investor” in GM but had to prevent pg 37
100 SOUTH AFRICAN RAND 46.1100 42.4200 42.2200
Since the start of the year, GM has a liquidation that analysts say would
100 SRI LANKA RUPEE 3.1700 2.9000 2.7000
been kept alive with US government have cost tens of thousands of jobs at
funding as a White House-appointed a time when the economy is mired in 100 SWEDISH KRONA 48.2200 43.8600 43.6600
task force vetted plans for a sweeping recession. 100 THAI BAHT 11.0000 9.3200 8.9200
reorganisation that will be undertaken GM alone employs 92,000 in the Source: Malayan Banking Berhad/Bernama
with US$50 billion in federal financing. United States and is indirectly responsi-
By taking a 60% stake in a reorganised ble for 500,000 retirees.
GM, the Obama administration is gam- “We want a quick, clean exit (from
bling that the automaker can compete bankruptcy) as soon as conditions
with the likes of Toyota after its debt
is cut by half and its labour costs are
permit,” Treasury Secretary Timothy
Geithner told students at Peking Uni-
briefs
slashed under a new contract with the versity in Beijing. “We’re very optimistic
United Auto Workers union. these firms will emerge without further
The governments of Canada and the government assistance.” China on shopping spree in Taiwan
province of Ontario agreed to provide US officials said there was no plan to TAIPEI: China is sending teams to Taiwan to buy billions of
another US$9.5 billion to GM in a late provide any further funding for GM and dollars of goods ranging from food to television screens in
addition to the plans for the bankruptcy. insisted that all of the Detroit Three could a gesture aimed at boosting the island’s sagging economy,
GM plans to close 11 US facilities and survive. Ford Motor Co has not sought officials said yesterday.
idle another three plants. It has not pro- emergency federal aid. – Reuters The first of three Chinese procurement delegations
arrived on Sunday, with two further groups arriving late
June and next month, officials said.
The unusual plan launched by China’s authorities – for
the first time in nearly six decades – is a further sign of
improvement in ties between Taipei and Beijing after the
bilateral trade amid the current economic Devamany said that India, China and the China-friendly administration of President Ma Ying-jeou
climate. Middle East would be the main markets to was inaugurated in May last year.
With bilateral trade valued at US$10.5 focus on in order to further stimulate the local “The mainland will buy anything we need from Taiwan,
billion (RM36.75 billion) last year, he said that economy. we won’t buy from any other places,” Li Shuilin, head of
trade and investment between the two coun- “For the Middle East, we will be focusing China’s Mainland Association for Cross-Strait Economic
tries are expected to see continuing growth, on Islamic finance and halal products, for and Trade Exchanges, told reporters.
although the growth is not likely to be as high India we looking on how to collaborate on Li would not specify the value of the orders to be placed
as 29% recorded last year. business development and for China there is by the first procurement team, but Taiwanese trade of-
In 2008, India imported US$7.1 billion worth a huge market available there,” he said. ficials estimated this would be worth around US$2 billion
of products from Malaysia, mostly crude palm Devamany said that Indonesia and Indo- (RM7 billion). – AFP
oil, while Malaysia imported products worth china were also in the listed areas that the
US$3.4 billion from India. government was looking into. Oil price hits seven-month peak
“Buying is still there and there is a lot of “This is necessary because of the global LONDON: Crude oil prices soared yesterday, rising
room for improvement, creating more move- economic turmoil that we are facing now. A above US$68 (RM238) a barrel for the first time for
ment between the two nations,” said Deputy lot of factories and SMEs (small and medium seven months, boosted by higher Chinese output, a
Minister in the Prime Minister’s Department, enterprises) are affected and we are working weak US currency and rising equity markets, traders
Datuk S.K. Devamany. to make the economy more stable,” he said. said.
He said that Malaysia was also looking to According to Devamany, the move will also New York’s main futures contract, light sweet
leverage on India’s expertise in the areas of help to diversify local players’ portfolio, thus crude for July delivery, struck US$68.29 – a level last
biotechnology, tourism and outsourcing. turning them into global players. – Bernama reached on Oct 30. Brent North Sea crude for delivery
in July bounced as high as US$67.69 a barrel. – AFP

China and US crucial to world economy, says Geithner

BEIJING: US Treasury chief Timo-
thy Geithner began a two-day visit
to Beijing yesterday by calling China
and the United States indispensable
partners in solving the economic
crisis and other world issues.
Geithner, who earlier this year
described China as a currency
manipulator, also used a speech at
Peking University to urge his hosts to
allow a more flexible exchange rate.
“China and the United States
individually, and together, are so
important in the global economy
and financial system that what we
do has a direct impact on the stabil-
ity and strength of the international
economic system,” he said.
“Global problems will not be
solved without US-China coopera-
tion. That goes for the entire range
of issues that face our world, from
economic recovery and financial
repair to climate change and energy
policy.”
While praising Beijing’s strategy
to stimulate domestic demand and
overcome the global financial crisis,
he urged China to deepen the reform
of its currency regime.
“An important part of this strategy
is the government’s commitment to
continue progress toward a more
flexible exchange rate regime,”
Geithner said, according to a text of
his speech.
“Greater exchange rate flexibility
will help reinforce the shift in the
composition of growth, encourage
resource shifts to support domestic
demand, and provide greater abil-
ity for monetary policy to achieve
sustained growth with low inflation
in the future.”
Geithner triggered anger in
Beijing in January when he said in
a written reply to a senator during a
confirmation hearing that US Presi-
dent Barack Obama “believes that
China is manipulating its currency.”
In April, Obama’s administration
said China had not manipulated
its currency to snare a competitive
advantage, but insisted that the yuan
remained undervalued. – AFP