14  theSun | THURSDAY AUGUST 27 2009

business

GDP contracts at slower pace of 3.9% for Q2

KUALA LUMPUR: Malaysia’s Gross
Domestic Product (GDP) growth in
the second quarter of 2009 contracted
3.9% compared with a 6.2% decline
in the first quarter.
This brings the GDP growth for
the first half of this year to minus
5.1%.
Bank Negara Malaysia governor
Tan Sri Dr Zeti Akhtar Aziz, in an-
nouncing the GDP figures, attributed
the smaller contraction to higher
public spending and positive growth
in private consumption.
Based on the preceding quarter,
real GDP recorded a positive growth
of 4.8% compared with the first
quarter of this year, she said at a
press conference to announce the
country’s economic performance
yesterday.
During the quarter, Zeti said, do-
mestic demand registered a slower
decline of 2.3% following expansion
in both public and private sector
spending.
She said private consumption
recorded a positive growth of 0.5% as
labour market conditions stabilised
while lower price levels provided fur-
ther support to consumer spending.
“This trend has been reinforced
by the continuous access to financ-
ing while consumer sentiment also
improved in the second quarter.
“We look at the consumer con-
fidence index which increased to
105.8 points from 78.9 points in the
previous quarter.”
The governor said public con-
sumption expanded by 1% due to
higher expenditure on supplies and
services and emoluments.
Meanwhile, elaborating on the
demand side, the Statistics Depart-
ment said private final consumption
expenditure registered a turnaround
by expanding 0.5% after decreasing
0.7% in the last quarter.
On the supply side, growth was
contributed by the services, construc-
tion and agriculture sectors.
The department said the exter-
nal sector continued to register a
negative momentum in the second
quarter as exports declined 17.3%
while imports recorded a smaller
contraction of 19.7%.
It said exports continued to be
subdued due to the sluggish exter-
nal demand but the improvement in
imports was supported by the slight
increase in domestic demand.
Final consumption expenditure
grew 0.6%, after contracting 0.2% in
the first quarter, as the government’s
consumption expenditure increased
1% in the said quarter.
The department also said gross
fixed capital formation declined 9.8%
compared with a negative 10.8% in
the previous quarter.
On the supply side, the manufac-
turing sector fell 14.5% for the quarter
under review, against a contraction
of 17.9% previously, with electric
and electronic products registering
a decline of 27.3%.
The services sector, in turn,
showed a turnaround from a nega-
tive 0.2% to an increase of 1.6% due
to improvements in most services
sub-sectors except for transport &
storage and utilities.
The agriculture sector grew 0.3%
compared with a negative growth of
4.3% in the preceding quarter while
construction expanded 2.8% from an
increase of 1.1% in the first quarter.
– Bernama

AmBank’s triple guarantee fund

KUALA LUMPUR: AmBank Group has
launched the AmTriple Guarantee Fund,
a single premium endowment plan un-
derwritten by AmLife Insurance Bhd.
The product is a zero risk investment
savings plan designed to safeguard the
money of investors and provide them a
safe haven to place their investments
in time of adverse global economic
conditions.
“AmTriple Guarantee comes with
three ‘guarantees’ in one single pre-
mium plan,” AmBank (M) Bhd managing
director, retail banking, Datuk Mohamed
Azmi Mahmood said yesterday.
This includes a guaranteed step-up
annual dividend payout of up to 4% per
annum if held to five years’ maturity,
and 100% capital guaranteed protection
regardless of market movements.
Furthermore, it guarantees life
insurance protection of up to 125% of
a single premium throughout the entire
period, Mohamed Azmi said.
AmTriple Guarantee provides step
up annual dividend starting at 3% for
the first year, and increases up to 4%
at the fifth year, which makes the fund
more appealing to investors, he said.
AmTriple Guarantee has an author-
ised fund size of RM100 million. It is
open to investors for a 30-day period
from Aug 13 to Sept 11, 2009, at 187
AmBank branches nationwide.
The minimum investment is
RM20,000. – Bernama
OSK upgrades property sector to neutral
KUALA LUMPUR: OSK Research is
upgrading its recommendation on
property sector to neutral from un-
derweight in view of the possibility
of certain investors having already
bought into 2010 valuations.
“Despite the upgrade, we still
believe that a moderate correction in
property stock prices is inevitable in
the short term,” it said in its research
note yesterday.
As most of these stocks are already
trading close to their 2010 fair value
anyway, the current risk-reward ratio
appears to be unfavourable and as
such investors are generally advised
to accumulate only after a meaningful
price correction, it said.
“The rally in property stocks from
the March 2009 lows caught us by
surprise as we had initially thought
that such rally would only take place
in early 2010 when the market would
be likely to aggressively accumulate
property stocks 12 months ahead of
the 2011 upcycle,” OSK said.
This rally, it said, can be explained
by the existence of two major groups
of investors in the market.
There are those who believe in a
robust V shape recovery in the sec-
tor and may have priced in an early
upcycle in 2010.
There are also investors with a
huge risk appetite who may have
bought into year 2010 valuations in
anticipation of an upcycle in 2011.
“The performance of property
stock prices will very much depend
on how these two main groups of
investors play out their strategies in
the next few months,” OSK said.
“We believe that a correction in
property stock prices in the short term
is inevitable, as the reality that will
emerge soon would likely disappoint
those who have been overly-optimistic
of a robust sector recovery in 2010.”
However, as investors who are
already looking at year 2010 valua-
tions may take the opportunity to buy
into dips, the expected correction in
the near term is likely to be moderate,
OSK said. – Bernama

For the second quarter ended June

briefs
Genting’s Q2 pre-tax profit
drops to RM438.85m
KUALA LUMPUR: Genting Malaysia Bhd’s
pre-tax profit for the second quarter ended
June 30, 2009 fell to RM438.85 million from
RM511.33 million in the corresponding
quarter last year.
Its revenue fell to RM1.20 billion from
RM1.24 billion previously.
For the six-month period, its pre-tax
profit fell to RM842.54 million from
RM906.72 million in the corresponding
period in the previous year.
Revenue, however, rose to RM2.38 bil-
lion from RM2.33 billion previously.
It declared an interim dividend of three
sen.
Genting said barring any adverse
changes in business conditions, the group
expected its performance for the remain-
ing period of the year to be satisfactory.
– Bernama
Allianz’s Q2 profit up 25%
to RM50m
KUALA LUMPUR: Allianz Malaysia Bhd’s pre-tax
profit for the first six months ended June 30,
2009 rose by 24.8% to RM50.04 million from
RM40.113 million in same period a year ago.
Revenue surged by 18.9% to RM1.06 billion
from RM897.08 million previously.
For the second quarter ended June 30,
2009, its pre-tax profit rose to RM22.40 million
from RM14.18 million in the same quarter a
year ago. Revenue rose to RM570.97 million
from RM498.25 million previously. – Bernama
Mudajaya’s H1 pre-tax profit
up by 47% to RM57m
KUALA LUMPUR: Mudajaya Group Bhd’s
pre-tax profit for half-year ended June 30,
2009 rose by 47.1% to RM56.5 million from
RM38.4 million in the previous corresponding
period.
Revenue rose by 69.9% to RM308.1 mil-
lion from RM181.7 million previously.
30, 2009, its pre-tax profit rose by 86.8%
to RM36.8 million from RM19.7 million in
the same quarter of 2008. Revenue rose
by 45.7% to RM182.7 million from RM125.4
million previously. – Bernama
IOI Corp’s Q4 pre-tax profit
eases to RM613m
KUALA LUMPUR: IOI Corporation Bhd’s pre-
tax profit for the fourth quarter ended June
30, 2009 fell by 28.4% to RM612.75 million
compared with RM856.1 million in the same
quarter last year.
Its revenue also declined by 31.53% to
RM3.12 billion from RM4.56 billion previously.
In a filing to Bursa Malaysia yesterday, the
company said the lower profit was due to lower
profit contribution from the plantation and
manufacturing segments as well as an impair-
ment loss of RM242.8 million recognised on a
development property in Singapore.
On a full financial year basis, the group re-
ported a 49.9% lower pre-tax profit of RM1.55
billion for financial year ended June 30, 2009
from RM3.1 billion previously.
Its revenue slipped by 0.4% to RM14.6 billion
from RM14.67 billion previously.
Its earnings per share declined to 8.21 sen
from 9.91 sen previously. – Bernama
Parkson’s Q4 pre-tax profit
soars 225%
KUALA LUMPUR: Parkson Holdings Bhd, a
major department store operator in China,
Malaysia and Vietnam, announced a whop-
ping RM398.51 million or 225% increase in
pre-tax profit for the fourth quarter ended
June 30, 2009 against RM124.60 million
raked in the corresponding fourth quarter.
Revenue rose to RM574.41 million from
RM510.075 million previously.
For the year, pre-tax profit rose to
RM935.50 million from RM762.26 million
previously as revenue increased 15.2% to
RM2.54 billion from RM2.24 billion in the
corresponding period.
The company is recommending a first
and final cash dividend of 5 sen per share
and distribution of share dividend on the ba-
sis of one Parkson treasury share for every
100 ordinary shares held in Parkson for the
year ended June 30, 2009. – Bernama