Malaysian share prices closed slightly higher in thin trade on Friday, with sentiment still fragile ahead of the central bank's interest rate decision due out later in the evening, dealers said.
An hour after the market had closed, Bank Negara Malaysia announced its overnight policy rates will remain unchanged at 3.50 percent. The Kuala Lumpur Composite Index (KLCI) closed up 2.39 points at 950.52. Winners led loser 420 to 260 with 348 stocks unchanged on turnover of 410.28 million shares valued at 619.89 million ringgit (177 million dollars).
Dealers warned that the market looked set to continue trading rangebound next week ahead of the release of second-quarter gross domestic product (GDP) growth data on Wednesday. An economist with a local bank-based brokerage had earlier said the central bank is not likely to raise its key rate in today's meeting. He said the governor had mentioned several times in the past that the inflation rate is likely to moderate in the second half and there is no urgency to raise the rate.
Trading will be suspended on Thursday as Malaysia celebrates its 49th National Day. On Friday, 1 September, Prime Minister Abdullah Ahmad Badawi will present the 2007 Budget to parliament.
Among key blue chips, Maybank was higher after posting a surprise increase in its fourth quarter net profit. The banking group ended the day up 0.20 ringgit at 11.00. National utilities firm Tenaga Nasional was flat at 9.20 ringgit and Telekom Malaysia was unchanged at 9.05.
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