Malaysian shares finished higher for the third consecutive day on Friday, boosted by foreign buying of select market heavyweights like phone firm Telekom Malaysia Bhd.
Investors also took in stride a rise in local fuel prices, with the benchmark Kuala Lumpur Composite Index ending 0.47 percent up at 853.93, its highest close in a week.
Malaysia raised the price of petrol, diesel and liquefied petroleum gas by between 3.7 percent and 6.4 percent on Friday, the second increase in five months, following a surge in crude oil prices to record highs.
"I think everyone has been expecting it to come with the rise in oil prices, so they were not that surprised," said a local fund manager.
In the broader market, volume was a moderate 342 million shares worth 767 million ringgit ($202 million). Gaining stocks beat decliners 382 to 276.
Shares of national car maker Proton Holdings Bhd rose 6.1 percent to 8.70 ringgit on a report that it was talking to German manufacturer Volkswagen for a partnership.
A deal would give the German firm a foothold in Southeast Asia's fast-growing auto market.
State-controlled phone firm Telekom Malaysia led the index's rise with a 0.9 percent gain to 11.30 ringgit.
Among other heavyweights, Petronas Gas added 0.7 percent to 7.00 ringgit while leisure group Genting climbed 1.8 percent to 17.20 ringgit.
But dealers cautioned that gains would be limited as investors keep an eye on high oil prices.
"There was some foreign buying of blue chips but it's unlikely to be a great surge of interest with oil prices the way they are," said a dealer with a local bank.
Dealers expect the index to trade within the 845-855 band as a lack of fresh leads and worries about oil prices curb investor appetite for equities.
Comments
Comments are closed.