December 1, 2008 Daily Highlights

December 2, 2008 at 3:57 am Leave a comment


KLCI Update
The KLCI was in negative territory throughout the day, but closed well off its lows. The index closed 3.8 points lower at 866.1 points. Market breadth was slightly negative with losers leading gainers by a 5-to-4 margin. Trading volume totaled 582 million shares. Gainers include BAT, DiGi and KL Kepong. Genting’s shares were heavily sold down, falling 8.1% on heavy volume of 21.8 million shares after the company announced third quarter losses, which included impairments for its recently acquired UK casinos. It was
also the biggest loser of the day, with Tenaga, Resorts and YTL among other notable stocks in the red. Similarly, Resorts World, which reported a 495 fall in third quarter net profit saw its share price fall 4.1%. It was the most actively traded stock with 96 million shares traded.

Regional Update
Australian stocks fell as the deteriorating global economy weighed on corporate profit growth and commodity prices. Brambles Ltd., the world’s biggest supplier of pallets used to move and store goods, plunged 6.1 percent. BHP Billiton Ltd., the world’s largest mining company, sank 4 percent, while rival Rio Tinto Group plunged 5.5 percent. The S&P/ASX 200 Index lost 2 percent to 3,668.20 at 11:50 a.m. in Sydney, eroding the biggest weekly gain in the benchmark’s history dating back to 1992. The index has slumped in each of the past three months. The benchmark has tumbled 46 percent from its Nov. 1, 2007, record as the credit crunch prompted a global recession. The Bureau of Statistics said in Sydney today that Australia’s corporate profit growth slowed in the third quarter as earnings at retailers, transportation businesses and manufacturers dropped.

US Stocks
The following companies had unusual price changes in U.S. trading today. Stock symbols are in parentheses, and share prices are as of 1 p.m. in New York, unless otherwise specified. ArcelorMittal (MT US) slipped 7.1 percent, the most in more than a week, to $23.68. The world’s biggest steelmaker will lay off 490 workers at its Burns Harbor, Indiana, steel plant, almost 2,000 fewer than originally planned. The company said yesterday it may cut up to 9,000 jobs, or 3 percent of its global workforce, as demand slumps. Other steelmakers fell. AK Steel Holding Corp. (AKS US) lost 8.4 percent to $7.88. Steel Dynamics Inc. (STLD US) lost 0.4 percent to $8.26.


Court grants leave for Bursa to intervene in GPlus’s winding up The Court has allowed Bursa Malaysia Securities Berhad’s (Bursa Malaysia) application to be made a party in the winding up proceedings against GPLUS. Hence, Bursa Malaysia can now proceed with the hearing of its application filed in court on Sept 30, 2008 for a court order directing GPLUS and its provisional liquidator to appoint the special auditor, BDO Binder, in accordance with the directive issued on Aug 26, 2008. Bursa Malaysia’s directive dated Aug 26, 2008 for GPLUS to appoint the special auditor was issued after due assessment of all relevant facts and circumstances. This includes the failure by GPLUS to comply with Bursa Malaysia’s directive for information and clarifications and its failure to comply with various provisions of the Listing Requirements in relation to the submission of various financial statements within the timeframe prescribed.

MK Land expects RM350mil sales in FY09
MK Land Holdings Bhd is projecting a sales target of RM350 million for its financial year ending June 30, 2009 (FY09), under its turnaround plan, its chairman Tan Sri Mustapha Kamal said. He said the target would be achieved through sales of land, the selling of completed unsold units, units from current launches as well as new launches early next year. “Our focus will continue to be the business of affordable homes. As well, we have two projects of a total gross development value of RM3.85 billion – The Rafflesia and Armanee Terrace,” he told reporters at a briefing here on Nov 27. The Rafflesia, with a gross development value of RM1 billion, is a project of three-storey semi-detached bungalows. It is the first landed property in Damansara Perdana, sized 4,668 sq ft and 3,851 sq ft. Meanwhile, Armanee Terrace is a project comprising three blocks of duplex condominium in Damansara Perdana, and has a gross development value of RM2.85 billion.

DBSAM, Hwang-DBS M launch global Islamic investment management firm
DBS Asset Management Ltd of Singapore (DBSAM), in partnership with its long standing Malaysian partner, Hwang-DBS Malaysia Bhd (Hwang-DBS (M)), today launched its global Islamic investment management entity called Asian Islamic Investment Management Sdn Bhd (AIIMAN). The foreign-owned entity is set up with a paid-up capital of RM10 million with DBSAM owning 51% and the remaining 49% held by Hwang-DBS (M). The joint venture entity is headquartered in Malaysia and will start Syariah investment management activities soon. The launch was officiated by Securities Commission chairman, Datuk Seri Zarinah Anwar. Present to witness the launch are DBSAM chief executive officer Deborah Ho, and Hwang-DBS (M) and AIIMAN and director Alex Hwang.

Korean co to invest US$50m in eco-friendly golf course in Penang
Water taxis plying the Penang Channel and a theme park by the pier in Batu Kawan, modelled after the Santa Monica Harbour in Los Angeles, California are among the plans in the pipeline by Korean company DK Enc Co Ltd which is also undertaking a golfcourse in Batuk Kawan. DK Enc Co Ltd signed an memorandum of understanding (MOU) with the Penang state government to invest in a golf course in Batu Kawan during a recent investment trip by Lim and state government officials to South Korea. During a courtesy call on Chief Minister Lim Guan Eng at his office here on Nov 28, DK Enc Co Ltd chairman Jang Chin Kyuk said the development project was part of the US$100 million (RM363 million) investment which had been announced earlier. Jang said US$50 million would be spent on the eco-friendly golf course, to be designed by American Tom Peck, who was also present at the press course.

America Exports Unemployment as Slump Shrinks Consumer Demand
The U.S. once exported jobs. Now, it is exporting unemployment. America’s deepening recession, which has cost 1.2 million jobs so far this year, is taking a heavy toll overseas. Shrinking consumer demand for imports and less need for outsourcing by U.S. companies are idling workers at Germany’s Porsche SE and Chinese
businesses that make toys for Mattel Inc. Economists say worldwide unemployment may increase to a two-decade high as trade and investment ties that have developed during 20 years of globalization magnify the impact of the U.S. contraction.

Job Cuts, Factory Slump Probably Worsened: U.S. Economy Preview
The recession engulfing the U.S. economy deepened this month as employers slashed more jobs and manufacturing contracted at the fastest pace in a quarter century, economists said before reports this week. Payrolls shrank by 320,000 workers in November, the biggest one-month drop since the 2001 terrorist attacks, according to the median estimate of economists surveyed by Bloomberg News before the Labor Department’s Dec. 5 report. The jobless rate may have jumped to 6.8 percent, the highest level since 1993.

Asian Stocks Decline on Signs Global Recession Is Deepening
Asian stocks fell, snapping a four- day winning streak as Australian profit growth slowed and Japan’s Morimoto Co. became the country’s second-largest bankruptcy this year. BHP Billiton Ltd., the world’s largest mining company, slumped 4 percent in Sydney as a report showed Australia’s corporate profit growth slowed in the third quarter and as commodity prices declined. Mitsubishi Estate Co., Japan’s secondbiggest
property developer, lost 3.9 percent, leading declines among the country’s real-estate shares after Morimoto filed for protection from creditors.

Yuan Falls to One-Month Low as China Seeks to Shore Up Economy
China’s yuan fell to one-month low after the central bank set the reference rate at the weakest level since August, suggesting it may want to weaken the currency to spur the economy. The People’s Bank of China has kept yuan appreciation in check since policy makers shifted focus from stemming inflation to sustaining economic growth at the end of July. President Hu Jintao said China will face “high exposure” to the global
financial crisis and an economic slowdown for “a certain period of time,” the official Xinhua News Agency reported on Nov. 29.


BRIC Shoppers Will ‘Rescue World’ Says Goldman Sachs Economist
The best hope to keep the global economy growing may be people like Wei Yufang. A peasant who farms a small plot beside the mud-brown Huaihe River in central China, Wei has a modest dream: to buy an air conditioner to give her family relief from the dusty heat that each summer envelops Xiaogang (Little Hill) village in Anhui province. With economies from the U.S. to Japan in recession, Wei and the other 2.8 billion people in Brazil, Russia, India and China may provide the consumer demand needed to counter the slump.

China’s November Manufacturing Contracts by Record
China’s manufacturing contracted by the most on record and export orders slumped as a slowdown in the world’s fourth-biggest economy deepened. The Purchasing Managers’ Index fell to a seasonally adjusted 38.8 in November from 44.6 in October, the China Federation of Logistics and Purchasing said today in an e- mailed statement. China’s economy is deteriorating more quickly than expected by the nation’s top planning agency, its chairman, Zhang Ping, said last week. The situation is a test of the Communist Party’s ability to govern, President Hu Jintao said Nov. 29, according to the official Xinhua News Agency.


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2 December 2008 Newz Bits Banking Monthly Review : November 2008

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