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Malaysian share prices closed flat on Tuesday as late buying in blue chips reduced the market's early losses but sentiment remained generally cautious, dealers said.
They said buying was also boosted by speculation that regional markets should rebound shortly following another sharp sell-off on the prospect of higher US interest rates after the Federal Reserve meets next week.
The Kuala Lumpur Composite Index rose 0.48 points to 889.99 on volume of 327.60 million shares valued at 591.58 million ringgit (161.13 million dollars).
The ringgit traded at 3.6715 to the dollar and 4.6153 to the euro.
A local brokerage dealer said sentiment remains fragile due to concerns over future hikes in US interest rates and persistent volatility in global markets.
"The market is certainly suffering from a lack of positive leads, with the overall market heading for more consolidation this week. Trading remains cautious as sentiment has been badly bruised by extreme volatility in world markets," the dealer said.
Among blue chips, Tenaga closed the day up 0.10 ringgit at 9.10, Malayan Banking shed 0.20 to 10.40 while Telekom Malaysia gained 0.05 to 8.95. Public Bank firmed 0.10 to 6.25 after the reported remarks by its chairman that the bank's loan growth has not been affected by rising interest rates.

Copyright Agence France-Presse, 2006

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