Malaysian share prices closed up 0.89 percent on Tuesday in mixed trade on profit-taking, dealers said. They said the benchmark index, however, continued to post gains after the ringgit rose to its highest level since it was de-pegged from the US dollar in July 2005.
The Kuala Lumpur Composite Index gained 10.90 points at 1,236.63 on turnover of 2.09 billion shares worth 3.42 billion ringgit (978.5 million dollars) while losers led gainers 470 to 451, with 263 stocks unchanged.
At the close, the ringgit was quoted at 3.4960/5010 to the dollar, its highest level since March 1998, having appreciated by some 7.9 percent since its 3.8 peg to the greenback was removed in July 2005. Dealers said investor sentiment was also positive, underpinned by the central bank's positive statement on the ringgit and that the current rates is not hurting the country's exports.
"The central bank statement gives confidence to investors that the government is more open in its economic policies," said Choo Swee Kee, chief investment officer at TA Investment Management.
"It also encourages people that the ringgit is still undervalued and that the central bank will not intervene. There could be more upside for the ringgit," he added.
Malaysian lender RHB Capital posted strong gains after Kuwait Finance House indicated that the consortium it is leading could invest up to 12 billion ringgit for a proposed strategic partnership with the Rashid Hussain Bhd banking and finance group.
RHB Capital gained 0.30 ringgit or 7.54 percent to 4.28 while RHB added 0.07 ringgit to 1.58. Among index heavyweights, national utility Tenaga fell 0.10 ringgit to 12.40, Telekom Malaysia lost 0.20 to 10.60, while Maybank gained 0.10 to 13.40.
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