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Malaysian share prices closed 2.0 percent lower on Monday in line with losses in other regional markets and a sell-off in commodities, dealers said.
They said sentiment was also undermined by the possibility of a fourth interest rate hike in six months as Bank Negara Malaysia held a monetary policy meeting. It, however, announced after the market closed that interest rates would be left unchanged.
The Kuala Lumpur Composite Index shed 18.89 points to 925.51 on volume of 1.00 billion shares worth 1.53 billion ringgit (421 million dollars).
Losers overwhelmed gainers 880 to 89, with 144 stocks unchanged and 204 untraded.
The ringgit was traded at 3.6340 to the US dollar and 4.6335 to the euro.
"I do not know how long investors would be able to endure this losing streak. If it keeps going at this rate, it will definitely help (if something is done) to strengthen investors' perception" of the market, a local brokerage dealer said.
He said the losses have dampened investor interest in trading especially with no immediate prospects of a recovery in sight.
Among blue chips, Tenaga Nasional and Malayan Banking were both down 0.10 ringgit at 8.60 at 10.80 respectively, while Telekom Malaysia dropped 0.05 to 9.50.
Counters that saw big losses were IOI Corp, down 0.50 at 14.70, British American Tobacco (Malaysia), down 0.50 at 39.25, Bursa Malaysia, down 0.50 at 6.15, and IJM Corp Bhd, down 0.40 at 5.55.

Copyright Agence France-Presse, 2006

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