Today's Market Preview (28-11-2008)

KNM is building a base at RM 0.55

KNM is building a base at RM 0.55. When they cumulative enough share, KNM will up again to RM 0.70.

Off Market Transactions On KLSE (27 November 2008)

Stock	Dir-Vol	Dir-Val	Av-Price
DIALOG	5,000,000	4,200,000	0.84
KEURO	1,843,600	322,630	0.175
PETRA	1,500,000	2,025,000	1.35
PICORP	1,485,200	626,458	0.422
YTLPOWR	1,000,000	1,800,000	1.8
BJLAND	600,000	2,076,000	3.46
TOPGLOV	500,000	1,790,000	3.58
SUPERMX	500,000	485,000	0.97
UMLAND	500,000	475,000	0.95
FRB	400,000	320,000	0.8
GAMUDA	200,000	320,000	1.6
OCTAGON	200,000	120,000	0.6
VOIR	130,000	175,500	1.35
N2N	30,000	7,200	0.24
DRBHCOM	11,900	9,044	0.76

Today's Market Preview (27-11-2008)

KNM - No positive bounds up after good 3Q result

KNM share price did not bound up with positive news on the 3Q profit report and form a Doji sign on 26 Nov 2008. KNM share price had controlled at between RM 0.54 and RM 0.55.

A long the day they are big big saler on RM 0.55 and big big buyer at RM 0.54. Base on the chart it was hard to said KNM price will up or down.

However if you had buy in at RM 0.55, if price go down to RM 0.45 you may buy again or if it short up again sale on RM 0.70. KNM is a profit making company so for it to drop lower is unlikely I think.

A Doji sign in KLCI chart.

The gains on Wall Street sent most Asian bourses higher only KLCI did not bounds up high. Good news had flow out but no position reaction on KLCI in this few day and vol is low untill formed a doji sign in the chart.

Now the KLCI will go up or down is hard to said, but I personally think it will up due to year end. Thing usually got better during year end.

Now government also buying some time by using Yoga issue to take ours attention out from economic like last time the "Ah Mok" case. I think the UMNO will push up share price after ValueCap automatically get they money by Jan 2009.

Off Market Transactions On KLSE (26 November 2008)

So low vol transaction in Off Market, KLCI may be will bound up in this few day.

Stock	Dir-Vol	Dir-Val	Av-Price
YTL-WB	50,000,000	100,000,000	2
PICORP	42,000,000	16,300,000	0.388
MEDAINC	3,597,000	259,645	0.072
HUAAN	3,000,000	720,000	0.24
JOHAN	2,123,600	265,450	0.125
ADVENTA	1,783,000	1,158,950	0.65
TDEX	1,679,300	387,189	0.231
ENERG	1,218,000	66,990	0.055
DGATE	900,000	139,500	0.155
BJLAND	600,000	2,076,000	3.46
FRB	600,000	468,000	0.78
TOCEAN	200,000	56,000	0.28
ASUPREM	200,000	69,000	0.345
GPACKET	80,000	54,000	0.675
LIONCOR	50,000	11,500	0.23
RAMUNIA	24,000	24,000	1

NM Group Bhd’s net profit up 69.5% to RM103.42mil in the third quarter ended Sept 30

From "The Star News Paper"

KNM Group Bhd’s net profit surged 69.5% to RM103.42mil in the third quarter ended Sept 30 from RM61mil a year ago mainly due to contribution from Borsig Group for the full quarter.

Announcing the strong set of results at midday on Wednesday, it said revenue jumped 93% to RM746.2mil from RM386.33mil. Earnings per share was 2.73 sen versus 1.66 sen.

KNM said compared with Q2, the Q3 group revenue of RM746.20 million and net profit of RM103.42mil for were higher by 24.49% and 7.40% mainly due to contribution from Borsig Group for the full quarter.

For the nine months, net profit surged to RM253.83mil from RM136.39mil while revenue jumped to RM1.67bil from RM911.4mil.

“The board is confident that the group’s results for the FY ending Dec 31, 2008 will exceed the financial performance of the group for FY ended Dec 31, 2007,” it added.

Look like it's a good news come out from KNM, but share price may no up more due to market situation and KLCI performance. For me RM 0.550 still is a good price to keep KNM share for 1-2 months befor March 2009.

Today's Market Preview (26-11-2008)

Off Market Transactions On KLSE (25 November 2008)

Stock	Dir-Vol	Dir-Val	Av-Price
MAGNI	23,199,886	23,431,885	1.01
PICORP	7,980,800	3,225,068	0.404
ENVAIR	6,841,300	396,795	0.058
ATLAN	5,200,000	14,040,000	2.7
ECOFIRS	5,077,000	583,855	0.115
DIALOG	5,000,000	4,200,000	0.84
TALIWRK	1,400,000	1,750,000	1.25
INIX	1,360,000	68,000	0.05
BJCORP-LC	1,256,215	628,108	0.5
PJBUMI	1,245,400	460,798	0.37
LEWEKO	600,000	199,800	0.333
TDEX	450,000	105,750	0.235
KONSORT	343,200	288,288	0.84
MTD	300,000	435,000	1.45
PELIKAN	290,100	316,209	1.09
MAEMODE	188,900	172,844	0.915
SUNZEN	100,000	30,000	0.3
N2N	80,000	20,800	0.26
KNM	70,000	43,050	0.615
SUPPORT	39,000	28,860	0.74
HUAAN	30,000	7,800	0.26
KINSTEL	20,000	9,500	0.475
BINTAI	20,000	5,200	0.26
KLK	60	417	6.95

Today's Market Preview (25-11-2008)

Gold price up again 3.91%

Gold price just hits RM 97.1954 per gram! On 21 Nov 2008 Gold price is in RM 93.5344, just in 1 working day Gold had up RM 3.661 ( 3.91% ).

Gold prices will countinues up due to Obama policy will print more USD money to flow out into the market, soon RM exchange rate with USD will been down.

Market situation did not getting better due to Gold price up and soon the share market will up, now the situation is will be better due to year end. Thing may go extram in next year.

KNM still in buy in zone

Again KNM is in the buy in zone on 24 Nov 2008. Just buy in at RM 0.550 with 10,000 unit, hopefully to sale it back by today.

This feel day, KLCI will had some good news to floor out for few days, KNM may rebound to RM 0.70 due to this condition and also 3Q08 report will be out soon.

Off Market Transactions On KLSE (24 November 2008)

Stock	Dir-Vol	Dir-Val	Av-Price
MAHSING	20,000,000	31,600,000	0.633
KURASIA	14,105,600	3,244,288	4.348
APP	4,000,000	1,080,000	3.704
PICORP	3,486,800	1,394,720	2.5
PELIKAN	2,500,000	3,137,500	0.797
CHEEWAH	1,900,000	684,000	2.778
SYCAL-LA	1,640,347	205,043	8
IOICORP	538,750	1,564,530	0.344
HEVEA	400,000	80,000	5
RPB	300,000	141,000	2.128
WTHORSE	230,000	241,500	0.952
MINPLY	182,800	48,442	3.774
RUBEREX	100,000	105,000	0.952
YEELEE	100,000	102,000	0.98
SLP	50,000	42,500	1.176
MAYBANK	5,000	24,800	0.202

Today's Market Preview (24-11-2008)

KNM is likely to go sideway

On 21 Nov 2008 KNM share price had drop into buy in zone. I just manage to sold my share on 21 Nov 2008 at RM 0.59 to take some profit in day trend.

Now KNM may move sideway between RM 0.50 to RM 0.70, any price fall below RM 0.60 is a buying zone and above RM 0.60 is selling zone I think.

They are some logic reason don't keep KNM share right now. KNM is a good profit making company but the share now did not go along with the company profit profile due to market unstable market and forgern fund is rushing out from KNM to help thier own country.

All the 35% forgern fund in KNM can't just sold out, they need to pull down share to buy some and sale more share in hand when price is high. Due to this reason KNM share price will no go vary down and no too high. As a small invester like me, just hope to follow the way to make some profit.

Happy holidays in weekend.

Gold price incense 10% in a week time

On 14 Nov 2008 1 g of gold buy back by Public Bank is RM 84.72 and now gold price had short up to RM 93.53 close on 21 Nov 2008.

About RM 8.81 incense per gram or 10.4%. If you had buy 60g during RM 84.72 ( RM 5,083.20 ) and now you had earn RM 528.60. This investment is risk low compare share but the profit is better that share due to now the share market is vary unstable.

old posting
Gold charts are beginning to display marks of rounding bottoms

KNM had drop below RM 0.60

As I write in my earlier post, KNM price drop below RM 0.60 is the buying zone.

Just get buy in 10,000 unit KNM share at RM 0.55 in the morning season. KNM had close on morning season at RM 0.58, base on chart anaylisis KNM share may close back to RM 0.595 to form a Doji sign or RM 0.60.

Will try to sale all 10,000 unit at afternoon season at RM 0.59, if done I will make a profit of RM 400.

Old links:

1. Still no sign KNM will go up or down
2. KNM is at the cross road

Today's Market Preview (21-11-2008)

Oil plunged below US$50 a barrel on 20 Nov 2008

Oil plunged below US$50 a barrel on Nov 20, deepening losses over the previous four sessions as battered financial markets reflected ever lower confidence in the world economy and evidence mounted of falling fuel demand.

US crude fell US$3.71, to US$49.91 a barrel by 1402 GMT, the weakest level since January 2007.

London Brent crude shed US$3.10 to US$48.62 a barrel.

As economic slowdown has destroyed fuel demand, oil companies plan to store millions of barrels of oil in the hope economics will improve.

Shipping brokers said on Nov 20, US oil trader Koch and Royal Dutch Shell had booked supertankers capable of storing 10 million barrels of crude, more than top exporter Saudi Arabia produces in a day.

Oil has lost about two-thirds of its value since July's record above US$147, in part because a global credit crunch has made investors pull their money out of riskier assets.

The falls on oil have mirrored weakness on equity markets, which dropped again on Nov 20 when European stocks hit their lowest level since March 2003.

"Weakness in stocks reflects weakness in the economy at the moment looking forward, but I think the general trend in oil is lower anyway," said Sucden's head of research Michael Davies.

"It's a bit of a chicken or egg thing. Everything's moving together, it's hard to say what's leading."

Oil differs from other commodity markets in that producer group the Organisation of the Petroleum Exporting Countries (Opec) can intervene to curb supplies, in theory providing support for prices.

Since early September, Opec has said it will remove around twomillion barrels per day from international markets, but the market has taken the view falling demand is a bigger factor than tightening supply.

Deutsche Bank said on Wednesday oil could fall to as low as US$40 a barrel next year.

Fears about their falling revenues have prompted some members of Opec to urge further cuts as soon as possible and ministers are to gather for informal talks on Nov 29 in Cairo.

They will also meet again for a formal session on Dec 17 in Algeria.

Gold charts are beginning to display marks of rounding bottoms

On 18 Nov 2008 was a scary one for US Stocks! The Dow dropped below 8000, and even a few points demoralizes buyers. It dropped today 427 points to stop at 7,997.28. S&P fell worse, down 52.54 points to 806.58. This is the third drop toward this same area, & truth to tell, markets only very rarely make triple bottoms. On third tries they usually break through. The Dow in Gold Dollars (DiG$) closed way down today at G$224.67 (10.867 oz) dropping through support toward the October low. Rest of November won't bring comfort to stock investors.

The US DOLLAR INDEX rose today, 54 Basis points, to 87.75. Ponder -- it remains below 88, which has stymied it so far twice, and looks ready to break down again. When it does, it will be Katy bar the door for silver and gold prices. Speaking of silver and gold, gold was firmer today and silver was mushier. Yesterday silver rose while gold fell slightly, today that was reversed. This bespeaks some confusion in the market. The big sellers have shot their wad without being able to break the market further.

Sellers are disappearing. Both silver and gold charts are beginning to display marks of rounding bottoms. If you had money to buy in share, I think better buy in Gold first.

AirAsia - A profit taking oppercunity

Today's Market Preview (20-11-2008)

SAPCRES is about to move up

Base on the chart, I think SAPCRES is about to move up. I just buy in at RM 0.805 on 19 Nov 2008. By looking on the vol, I think some good news is about to flow out from SAPCRES.

Still no sign KNM will go up or down

Base on the chart, if KNM is on the move up share price will bound back in this one or two days but if KNM share price drop below RM 0.60, KNM will likely to go down.

Off Market Transactions On KLSE (19 November 2008)

KNM had start off market transaction, if it countinues for 2 day it mean the time to buy in KNM is near.

Stock	Dir-Vol	Dir-Val	Av-Price
MAHSING	15,000,000	23,700,000	1.58
AFG	10,000,000	22,000,000	2.2
MENANG-WA	5,500,000	495,000	0.09
HEVEA	3,448,500	1,275,945	0.37
CARLAW	3,350,000	100,500	0.03
BONIA	1,600,000	1,920,000	1.2
PLS	1,500,000	840,000	0.56
PICORP	1,351,100	648,528	0.48
REDTONE	960,000	288,000	0.3
HUAYANG	700,000	392,000	0.56
TIMECOM	400,000	102,000	0.255
SUMATEC	250,900	58,962	0.235
ACOSTEC	250,000	180,000	0.72
SILKHLD	250,000	50,000	0.2
PJDEV	200,000	87,000	0.435
TA-WB	200,000	8,000	0.04
KONSORT	175,000	134,750	0.77
DBHD	150,000	18,000	0.12
E&O	138,380	85,104	0.615
SAPCRES	110,000	99,000	0.9
MAEMODE	100,000	90,000	0.9
MELEWAR	100,000	58,000	0.58
RANHILL	100,000	66,000	0.66
MPHB	100,000	106,000	1.06
KENANGA	100,000	40,000	0.4
APLAND	100,000	28,000	0.28
RAMUNIA	100,000	135,000	1.35
OLYMPIA	65,000	11,375	0.175
FABER	50,000	32,000	0.64
HUAAN	50,000	13,500	0.27
KNM	30,000	21,600	0.72
IJM	10,000	27,500	2.75
BINTAI	10,000	3,750	0.375

A Joke

Question: Which is the only country insulated from the global economic turmoil?
Answer: Malaysia.

This joke has been making the rounds in corporate offices, at dinner tables and in the living rooms across the country as Malaysians and foreign investors wonder whether the feel good statistics trotted out in the last few weeks suggests a government in denial or a government with a cavalier understanding of the global meltdown.

Neither it seems, checks by The Malaysian Insider show. What you have are planners who worry that people can talk themselves into the worst outcomes during an economic slowdown if confidence is allowed to ebb.

What you have are government officials crunching on numbers and scenarios and anticipating the impact of the recession in the United States, UK and Japan on the level of unemployment, foreign direct investment and even the crime situation.

A member of the Economic Council told The Malaysian Insider: “We are not in denial, the fact is that we are in a stronger position than most countries and we need to tell Malaysians that. But things could get bad.’’

How bad? The picture on Main Street is not pretty. At the height of the Asian Financial Crisis, some 80,000 Malaysians were made jobless. The early indications are that the retrenchments may not reach those numbers, though there has been a spike in the last couple of months.

Already there is anecdotal evidence that several factories are laying off workers as a result of depressed demand for their goods. The government expects the number of laid off workers to hover around 20,000 for the year but given that the full brunt of the economic slowdown has not been felt yet, this number could double or triple next year.

Government officials told the Malaysian Insider that there are plans to retrain those retrenched and even provide them with a monthly allowance.

In 1998, retrenched workers were given RM500 a month. The idea is to put money into people’s wallet and encourage them to keep on spending. Finance Minister Datuk Seri Najib Razak said yesterday that the government could unveil another stimulus package.

It is understood that change will be the only constant in the next 12 months.

The Economic Council – comprising ministers, senior government officials and corporate captains – believe that Malaysia needs to respond not only to the worsening global economic situation but also to incentive and stimulus packages unveiled by neighbouring countries.

A council member from the private sector explained: “What we did during the Asian Financial Crisis was defensive in nature, we had to protect our market and jobs. But this time, there is a will and need to go beyond that; we need to open up our economy more, improve the processes.

“We cannot afford to lag further behind Singapore and Hong Kong and lose out to Vietnam and Indonesia.’’

There has always been a gap between plan and action in Malaysia, mainly because of the sensitive issues of the New Economic Policy and bumiputera equity. Still, government officials said that a paper to liberalise certain sectors of the services industry will be tabled before the Cabinet soon.

Also being discussed is a more liberal policy of issuing work permits to skilled foreigners.

Still, the move to open up and liberalise and ensure that Malaysia does not end up a laggard when the global economic situation improves is not likely to be without challenges. For example, there is resistance to completely abolishing the Foreign Investment Committee, a body which approves property purchases and other investments by foreigners.

A senior Umno minister told several businessmen recently: “The FIC has no place in Malaysia. It is a waste of time. But if I said this publicly I would be hammered by Umno politicians.’’

So he has stayed silent. Meanwhile, the debate on the future of the FIC continues in the Economic Council.

“Nothing is sacred in the council. We are prepared to confront any issue but we also know that all our plans will be useless if there is a severe confidence deficit in Malaysia. We cannot afford that and we cannot afford having people to stop spending," said the council member.

Off Market Transactions On KLSE (18 November 2008)

Stock	Dir-Vol	Dir-Val	Av-Price
IPMUDA	10,000,000	6,800,000	0.68
PERWAJA	5,000,000	4,250,000	0.85
GEFUNG	4,891,600	978,320	0.2
PICORP	1,783,800	874,062	0.49
KINSTEL	1,621,500	745,890	0.46
MATRIX	1,500,000	450,000	0.3
BONIA	1,000,000	1,200,000	1.2
HEVEA	880,000	352,000	0.4
MMM	800,000	96,000	0.12
NAIM	711,000	1,422,000	2
BJLAND	400,000	1,384,000	3.46
MRCB	200,000	167,000	0.835
GAMUDA	150,000	264,000	1.76
TM	146,500	416,060	2.84
BPURI	113,200	80,372	0.71
VINTAGE	71,000	3,550	0.05
PETRA	61,000	100,040	1.64
HUAAN	60,000	18,900	0.315
DBHD	50,000	7,000	0.14
TIMECOM	50,000	13,750	0.275
GENTING	50,000	224,000	4.48
IJM	10,000	29,000	2.9
PSPRING	6,000	5,700	0.95

Government has been effectively collecting taxes instead on petrol consumption

Domestic Trade and Consumer Affairs Minister Datuk Shahrir Samad revealed today the government has stopped subsidising petrol since Nov 1 and has been effectively collecting taxes instead on petrol consumption.

Speaking to reporters in Parliament, he explained that even after the 15-sen drop today, which saw RON97 petrol dropping to RM2 per litre, and RON92 and diesel down to RM1.90, the government was no longer subsidising petrol at the pumps.

"Even if prices return to RM1.92, we will still have a bit of surplus," he said, adding that subsidies had disappeared once the global price of oil had dipped under US$65 per barrel.

Current prices are hovering at US$55 per barrel.

As oil companies take a 19-sen cut and fuel station operators take 12 sen, it can be inferred that the cost price of RON97 petrol is currently below RM1.61 if the government can still generate income at RM1.92.

Shahrir explained that the difference between petrol pump prices and the cost plus commission for the companies and operators was being returned to the government effectively as a form of tax.

This gels with the 2009 Budget winding-up speech by Finance Minister Datuk Seri Najib Razak where he claimed a projected RM7 billion savings in fuel subsidies will be utilised to stimulate the troubled economy.

The statement was puzzling as the government had earlier said it would maintain a 30-sen fuel subsidy to keep pump prices below market prices.

Shahrir also projected that with RM21 billion budgeted for fuel subsidies in 2009 and subsidies for 2007, when prices had averaged US$65 per barrel, amounting to RM8.8 billion, savings from fuel subsidies would be far more than RM7 billion.

"If crude oil stays under US$60 per barrel, I am expecting at least RM10 billion," he said.

He also added that subsidies for diesel and natural gas are still in place.

Shahrir, however, explained that this did not mean that the people were not being helped by the government.

"We are still giving the RM625 road tax rebate for cars and RM150 for motorbikes that goes straight into your pocket," he said, referring to the rebate announced when RON97 shot up to RM2.70.

"So the rebate is for when the people suffered for about three months," he said.

The Johor Baru MP had called a press conference to announce that a total cost of RM21.4 billion had been incurred by the government up to October this year due to tax exemptions and subsidies for fuel against RM16.2 billion last year.

This, however, is without tax exemption figures for October 2008.

He also said that government would consider a floor price for fuel.

Today's Market Preview (18-11-2008)

KNM is at the cross road

Base on the chart, KNM share prices is at a cross road going up or going down. However the probability KNM to go down beyond RM 0.40 is unlikely I think. By today KNM price may drop into area between RM 0.60 to RM 0.50 and has enter my buying zone.

I plan to buy KNM share 5000 unit at RM 0.55 ( RM 2750 ) and stand by to buy in another 5000 unit if KNM drop below RM 0.50 at RM 0.45 (RM 2250 ). If the share drop below RM 0.40, buy at RM 0.35 this is I think unlikely for KNM to drop at this low.

Total investment will be RM 5,000 if KNM drop or turning point at RM 0.40 where by did not drop below RM 0.40. After KNM turn and up again to RM 0.60 I will have a profit of RM 1,000 and if hit back RM 0.70 my profit will be RM 2,000

Off Market Transactions On KLSE (17 November 2008)

Stock	Dir-Vol	Dir-Val	Av-Price
TA	4,000,000	2,600,000	0.65
TALIWRK	3,250,000	4,062,500	1.25
MAHSING	2,000,000	3,200,000	1.6
HDISPLY	1,650,000	198,000	0.12
ASUPREM	1,215,900	437,724	0.36
ACOSTEC	750,000	600,000	0.8
SCOMI	500,000	235,000	0.47
LIONIND	470,000	396,700	0.844
JETSON	400,000	192,000	0.48
MRCB	332,000	277,620	0.836
MALTON	300,000	85,500	0.285
KURASIA	300,000	60,000	0.2
GAMUDA	200,000	372,000	1.86
KNM	150,000	101,250	0.675
YTLLAND	79,000	39,500	0.5
SPRITZR	75,000	104,250	1.39
CANONE	70,000	52,500	0.75
SWKPLNT	60,000	123,600	2.06
KPS	60,000	105,600	1.76
GRANFLO	55,000	18,425	0.335
PA	37,100	13,356	0.36
OLYMPIA	25,000	5,625	0.225
ENGTEX	21,000	17,955	0.855
SURIA	15,000	14,475	0.965
RANHILL	10,000	7,450	0.745

FMR & FIL was reduced to 6.57% or 255.95 million KNM shares

FMR LLC and FIL Ltd disposed of more than 38 million shares in KNM Group Bhd in early November.

A filing with Bursa Malaysia showed the funds disposed of 7.13 million shares on Nov 7 and 31.01 million shares on Nov 10.

After the recent disposals, their combined shareholding in the company, which is involved in the oil and gas supporting industries, was reduced to 6.57% or 255.95 million shares.

KNM share price closed at 65.5 sen on Nov 7 and 69 sen on Nov 10. Its share price was trading at a 52-week high of 2.48 on Jan 2.

At the current price of 66.5 sen, it is trading at a historical price-to-earnings of 8.41 times.

When the share go higher above RM 0.70 FMR LLC and FIL Ltd disposed they share in hand. KNM price below RM 0.60 is a good entry prices.

Japan’s economy slid into a recession !

Japan’s economy slid into a recession for the first time since 2001, the government said Monday, as companies sharply cut back on spending in the third quarter amid the unfolding global financial crisis.

The world’s second-largest economy contracted at an annual pace of 0.4 per cent in the July-September period after a declining an annualized 3.7 per cent in the second quarter. That means Japan, along with the 15-nation euro-zone, is now technically in a recession, defined as two straight quarters of contraction.

The result was worse than expected. Economists surveyed by Kyodo News agency had predicted an annualised 0.1 per cent rise in the third quarter.

Japan’s Economy Minister Kaoru Yosano said following the data’s release that “the economy is in a recessionary phase,” according to Kyodo.

But the worst may be yet to come in the wake of the global financial crisis, especially with dramatic declines in demand from consumers overseas for Japan’s autos and electronics gadgets. Hurt also by a strengthening yen, a growing number of exporters big and small are slashing their profit, sales and spending projections for the full fiscal year through March.

Toyota Motor Corp, for example, has cut net profit full-year profit forecast to 550 billion yen ($5.5 billion) — about a third of last year’s earnings.

Compared to the previous quarter, gross domestic product shrank 0.1 per cent, the Cabinet Office said. Business investment — a main driver of Japan’s six-year economic recovery since 2002 — dropped 1.7 per cent from the previous quarter.

“As the global economy is expected to slow down for the time being, downward movements (in Japan) are expected to continue,” Yosano said, according to Kyodo.

Since taking office in late September, Japanese Prime Minister Taro Aso has unveiled two economic stimulus packages in an effort to cushion the blow. His latest 27 trillion-yen ($275.7 billion) proposal includes expanded credits for small businesses and a total 2 trillion yen ($20.4 billion) in cash disbursements to households.

At its last meeting, the Bank of Japan cut its key interest rate for the first time in more than seven years, lowering it to 0.3 per cent, joining central banks around the world in trimming borrowing costs.

In its semiannual outlook report, the central bank slashed its projection for economic growth to just 0.1 per cent for the year through March, compared with a 1.2 per cent gain it projected in July. It said both exports and domestic private demand have weakened.

The deteriorating conditions also recently led Masamichi Adachi, senior economist at JPMorgan Securities in Tokyo, to downgrade his outlook on the Japanese economy.

“We are now looking for a severe recession, similar to that during Japan’s own financial market crisis in 1997 to 1998, and to the current US recession, in terms of depth of real GDP contraction,” he said in a report.

Monday’s data showed that net exports sapped 0.2 percentage point from growth, as the high cost of importing fuel eclipsed a slight increase in outbound shipments. Imports rose 1.9 per cent, while exports grew 0.7 per cent.

Private consumption, which accounts for more than half of inflation-adjusted GDP, increased 0.3 per cent from the previous quarter. However, the rebound in consumer demand is unlikely to last, economists say