theSun | THURSDAY MAY 28 2009 17

1,047.68  3.95
T 9,438.77 S
127.96
business KLCI
STI 2,306.08 S
67.29
Nikkei
TSEC 6,890.44 207.33
S
Hang Seng 17,885.27 893.71
S KOSPI 1,362.02 T
10.02
SCI 2,632.00 S
44.35 S&P/ASX200 3,801.10 S
12.70

KL market summary

MAY 27, 2009

INDICES CHANGE
Shares end lower
FBMEMAS 7,012.32 -17.19 SHARE prices on Bursa Malaysia closed lower Group fell 30 sen each to RM13.70 and
COMPOSITE 1,047.68 - 3.95 as earlier buying sentiments fizzled out and RM10.80 respectively, while Top Glove and
INDUSTRIAL 2,280.77 -24.79 losses in heavyweights pushed the Composite MISC-01 (Foreign) slipped 25 sen each to
CONSUMER PRODUCT 308.99 - 0.66 Index into negative territory, a dealer said. RM5.80 and RM8.25 respectively.
INDUSTRIAL PRODUCT 81.71 + 0.44
Heavyweights such as Tanjong, PPB Group, Volume leader Compugate Holdings
CONSTRUCTION 206.54 + 0.69
TRADING SERVICES 140.33 - 0.58 Top Glove and MISC-01 topped the losers list. inched down half sen to 10 sen, Sino Hua-
FINANCE 8,162.64 -32.70 Sime Darby and Maybank shares also took a An perked up 6.5 sen to 47.5 sen, KNM and
PROPERTIES 702.37 - 0.29 dip. At close, the benchmark Kuala Lumpur SAAG added half sen each to 81 sen and 34
PLANTATIONS 5,400.09 -11.54 Composite Index bucked the regional trend sen respectively, while E&O dipped 4.5 sen
MINING 299.91 -10.14 and declined 3.95 points to end at yesterday’s to 81.5 sen. EXCHANGE RATES MAY 27, 2009
FBMSHA 7,321.10 -17.05 lowest point of 1,047.68. Of the heavyweights, Sime Darby slipped
FBM2BRD 4,569.71 -12.43
The market opened 6.3 points higher at 10 sen to RM6.75, Maybank inched down five Foreign currency Bank sell Bank buy Bank buy
TECHNOLOGY 14.60 - 0.24
1,057.93. Advancers led decliners by 311 to sen to RM5.20, Tenaga Nasional was flat at TT/OD TT OD
TURNOVER VALUE 296, while 243 counters were unchanged, 385 RM7.65, Bumiputra-Commerce dropped five 1 US DOLLAR 3.5290 3.4740 3.4640
untraded and 36 suspended. sen to RM8.75 and Genting shed five sen to
1.229bil RM1.341bil 1 AUSTRALIAN DOLLAR 2.8100 2.6960 2.6800
Among the top losers, Tanjong and PPB RM5.45. – Bernama
1 BRUNEI DOLLAR 2.4460 2.3920 2.3840
1 CANADIAN DOLLAR 3.1750 3.1060 3.0940
1 EURO 4.9530 4.8460 4.8260

Chrysler faces D-Day as

NEW YORK: Chrysler was to 1 NEW ZEALAND DOLLAR 2.2220 2.1310 2.1150
face its day of judgment yester- 1 PAPUA N GUINEA KINA 1.4070 1.1680 1.1520
day as a bankruptcy court judge
ruled on a sale of its key assets 1 SINGAPORE DOLLAR 2.4455 2.3920 2.3840
to give the ailing automaker a 1 STERLING POUND 5.6550 5.5330 5.5130
fresh start in a partnership with 1 SWISS FRANC 3.2670 3.1970 3.1820
Italy’s Fiat.

GM nears bankruptcy
100 ARAB EMIRATES DIRHAM 97.8500 92.8400 92.6400
If Judge Arthur Gonzalez ap- 100 BANGLADESH TAKA 5.5200 5.2000 5.0000
proved the fast-track plan, a new 100 CHINESE RENMINBI N/A N/A N/A
Chrysler could emerge within
days, according to President 100 DANISH KRONE 68.5200 63.1000 62.9000
Barack Obama’s administra- 100 HONGKONG DOLLAR 46.3300 44.0000 43.8000
tion, which is spearheading the 100 INDIAN RUPEE 7.7100 7.1100 6.9100
plan and providing emergency In return, Fiat will allow Any delay would have been with Chrysler,” the source said 100 INDONESIAN RUPIAH 0.0358 0.0310 0.0260
funding. access to its technology to en- a major setback for Chrysler on condition of anonymity. 100 JAPANESE YEN 3.7210 3.6400 3.6300
The developments with able the US carmaker to make and the Obama administration, “We do expect it to be a more 100 NEW TAIWAN DOLLAR N/A N/A N/A
Chrysler are seen as critical for the smaller, greener cars that which aims for a rapid bank- complicated and longer process
General Motors, which is also are increasingly in demand. ruptcy exit to restart factories (in bankruptcy).” 100 NORWEGIAN KRONE 57.1800 52.4100 52.2100
living off government loans and The US Treasury has and revamp operations. In the cases of both GM and 100 PAKISTAN RUPEE 4.5200 4.2000 4.0000
scrambling ahead of a June 1 provided Chrysler with some Robert Kidder, ex-chairman Chrysler, a major legal question 100 PHILIPPINE PESO 7.6500 7.1900 6.9900
deadline imposed by the Obama US$9 billion (RM31.5 billion) in of Borden Chemical and Dura- is whether holders of bonds and 100 QATAR RIYAL 98.5900 93.7900 93.5900
administration that will likely emergency aid. Fiat must repay cell International, was to take other forms of secured debt can 100 SAUDI RIYAL 95.7000 91.0400 90.8400
lead to a bankruptcy filing. this money if it wants to take over as chairman at Chrysler be forced into bigger conces- 100 SOUTH AFRICAN RAND 44.0900 40.6200 40.4200
A source familiar with talks a majority stake in the Detroit from Robert Nardelli upon the sions than other stakeholders.
on Chrysler said the rebirth of firm. exit from bankruptcy. GM bondholders have balked 100 SRI LANKA RUPEE 3.1700 2.9200 2.7200
the new firm was now “pretty Chrysler cleared a potential Fiat chief executive Sergio at a plan that would give them 100 SWEDISH KRONA 48.5600 44.2800 44.0800
close”. hurdle on Tuesday as a district Marchionne was expected to some 10% of the new company 100 THAI BAHT 10.9900 9.3400 8.9400
Although the “old” Chrysler court judge rejected an effort to hold the same title at Chrysler in exchange for US$27 billion Sources: Malayan Banking Bhd/Bernama
may still be subject to a long take the case out of bankruptcy after its bankruptcy exit. (RM94.5 billion) in debt.
period of court supervision, the court for a full hearing on the GM meanwhile was widely Some legal and financial
new firm led by Fiat executives legal rights of some creditors. expected to file for bankruptcy analysts argue that the GM and
would be able to begin opera- The ruling in New York protection ahead of a June 1 Chrysler plans set a dangerous
tions with Chrysler’s plants and
workers, but freed of much of
federal court opened the door
for yesterday’s hearing on the
deadline imposed by the Obama
administration, which is provid-
precedent by wiping out more
debts from secured financial
briefs
its debts and legacy costs. fast-track plan. ing GM with emergency cash. creditors, which should be
The third-largest US auto- “We are pleased with the However, a source familiar given priority in bankruptcy.
maker was forced to file for judge’s decision to deny the with the talks said the GM road GM last week reached a ten- Finnair negotiates temporary layoffs
bankruptcy protection on April withdrawal (from bankruptcy to bankruptcy was expected to tative deal with the United Auto HELSINKI: Finnish airline Finnair said yesterday it would
30 and agreed to an alliance court) and therefore deny the be thornier than Chrysler’s. Workers union on cost-saving continue negotiations with personnel on temporary layoffs
with Fiat that will initially give motion for a stay” that would “It seems like almost every concessions that still must be to reduce costs but denied reports it was to announce
the Italian company a 20% delay the case for a full hearing, day we come upon some issue ratified by rank-and-file work- 1,200 permanent job cuts later this week.
stake. Chrysler said in a statement. or question that didn’t exist ers. – AFP The carrier could however not rule out possible job
cuts in the future.
“We have said that our capacity will decrease by 8%
this year from 2008, which means that operational person-
Crunch time for Opel as Germany mulls China bid nel can be temporarily laid off. In practice temporary lay
offs are used in all of our units,” Finnair spokesman Taneli
BERLIN: The fate of tens of thousands of guarantees from Berlin and has pledged not a hasty decision would be a “catastrophe”. Hassinen said.
workers hung in the balance yesterday as to close any German plants for two years, The frontrunner in the bidding war Finnish broadcaster MTV3 reported late Tuesday the
Berlin prepared a crunch meeting to select seen as an attractive proposal in an election remains Canadian auto parts giant Magna airline was expected to announce new cost and job reduc-
its preferred bidder for struggling General year. International – backed by Russia’s top bank, tions on Friday and that it aimed to cut costs equivalent
Motors subsidiary Opel. Although the final decision lies with GM the state-controlled Sberbank – which would to 1,200 job cuts. Hassinen stressed the company had no
Chancellor Angela Merkel was expected and the US government, Germany has a major see Russian truck maker GAZ making Opel such plans.
to begin talks at 1900 GMT (2am today in say because it is offering billions of euros in vehicles in Russia. Finnair has launched a cost cutting programme aimed
Malaysia) with top politicians from Berlin and loan guarantees and has most of GM Europe’s Premiers of states where Opel has its main at creating savings of 100 million euros (RM491.4 mil-
Washington, as well as representatives from factories and employees. factories have come out clearly in favour of lion) amid the global economic crisis, which has heavily
the three firms that have placed official bids Germany is manoeuvring to keep as many Magna, as have unions, while centre-left impacted airlines around the world. So far some 600 jobs
– Magna, RHJ International and Fiat. of Opel’s 25,000 German employees as pos- members of the governing coalition are also have been slashed and more than 6,000 employees laid
And in a last-minute dramatic twist to the sible four months before the country holds a thought to favour the Canadian solution. off temporarily. – AFP
long-running saga, Berlin confirmed it had general election. But advisers cited by Handelsblatt
also received interest from a Chinese firm, The talks were expected to last late into criticised the offer for not bringing sufficient ArcelorMittal eyes
reportedly the Beijing Automotive Industry Wednesday night and the decision could yet funds to the table. If the bid were accepted RM12.3 billion bond issue
Corporation. be postponed unless the bidders improve their “the new company would be insolvent from
According to Die Welt daily, the Beijing offer, business daily Handelsblatt reported. day one”, the experts were quoted as saying. PARIS: ArcelorMittal, the world’s biggest steel maker,
company is seeking less in the way of loan It cites government advisers as saying that – AFP yesterday announced a 2.5-billion-euro (RM12.3 bil-
lion) bond issue as the steel giant struggles amid a
collapse in demand.
“The proceeds ... will be used to lengthen the debt
Russian firm invests RM702m in Facebook maturity profile and to refinance existing indebted-
ness,” the Luxembourg-based company said in a
NEW YORK: A Russian internet FB said DST, however, would FB for US$240 million (RM842.4 prove profitable to FB. statement, adding that the offering was set to close
company has invested US$200 not be represented on the board million) in 2007, a deal that at “We’ve invested in five social next Wednesday.
million (RM702 million) in Face- of the fast-growing social network, the time valued the company at networks in Europe,” he said in ArcelorMittal has been badly hit by the global
book in a deal that values the US which signed up its 200 millionth US$15 billion (RM52.7 billion). a conference call. “They’ve been economic crisis. The company reported a net loss
social networking giant at US$10 member recently but has yet to While its number of users has able to monetize better than of more than US$1 billion (RM3.5 billion) in the first
billion (RM35 billion), the compa- turn a profit. grown at an amazing clip, FB, FB because the companies are quarter and has halted or reduced production at many
nies announced on Tuesday. DST’s purchase of a 1.96% unlike other web giants such as further along the curve. facilities around the world.
Besides purchasing a nearly 2% stake in preferred stock in Amazon, eBay, Google and Yahoo!, “We believe the same path will It raised about US$4 billion (RM14 billion) last
equity stake in Facebook (FB), Dig- privately held FB is the largest has yet to prove how it is going to follow for Facebook,” Milner said. month through a capital increase and the issue of
ital Sky Technologies (DST) is also cash-raising exercise by the Palo translate traffic into cash. “I’m really looking forward to convertible bonds.
offering to buy at least US$100 Alto, California-based company in DST chief executive Yuri Milner learning more about how these Earlier this month, police fired rubber bullets when
million (RM351 million) of common two years. said he expected his company’s models are working in Europe and employees stormed the venue of ArcelorMittal’s
stock held by current and former US computer software giant experience running social net- Asia,” FB chief executive Mark annual general meeting in Luxembourg to protest
FB employees, they said. Microsoft bought a 1.6% stake in works in other countries would Zuckerberg said. – AFP planned job cuts. – AFP