Malaysian share prices closed 0.11 percent lower on Friday in range bound trade with sentiment weighed down by overnight declines in Wall Street and foreign fund selling in the local market, dealers said.
They said expectations of continued interest rate hikes in the US were pushing foreign funds to slowly reduce non-dollar denominated assets.
In spite of the mixed trade, semiconductor stocks bucked the trend on hopes of a recovery in the technology sector.
The Kuala Lumpur Composite Index shed 1.04 points to 925.21 and volume traded was 390.45 million shares worth 613.67 million ringgit (162.80 million dollars) while gainers outnumbered losers 347 to 327.
The ringgit was traded at 3.7695 to the dollar and 4.5805 to the euro.
"Trading was range bound today ... there are growing concerns that foreign funds will further cut their positions in non-US dollar assets," a local brokerage dealer said.
He said Malaysia might have to make some adjustments to raise interest rates, given the widening differential in US-Malaysia interest rates.
Among blue chips, Tenaga Nasional was flat at 10.80 ringgit while Telekom Malaysia and Malayan Banking fell 0.10 to 10.20 and 11.40 respectively.
Among Malaysian semiconductor stocks, Malaysian Pacific Industries was up 0.10 at 10.90, Unisem gained 0.10 to 1.43, Globetronics was up 0.025 at 0.34 while AIC Corp gained 0.01 to 1.14.
Plantation stocks were lower on profit taking, after two consecutive days of gains on expectations of improved crude palm oil prices, dealers said.
Sime Darby eased 0.05 to 6.15 ringgit, Asiatic Development fell 0.14 to 2.29 while Golden Hope and PPB Oil Palms were flat at 4.12 and 4.92 respectively after earlier losses.
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