Malaysian share prices closed up 1.53 percent on Friday, with the benchmark index reaching another new high, dealers said. They said gains were supported by positive economic data out of the US and a strong ringgit, with investors also buying in on expectations of further upside to the market spurred by merger and acquisition deals.
The Kuala Lumpur Composite Index closed up 20.61 points at 1,363.40, its highest level for the day as well as the record closing level. Volume traded was 1.533 billion shares worth 2.987 billion ringgit (873.39 million dollars), while losers led gainers 463 to 456, with 282 stocks unchanged.
At the close, the ringgit was quoted at 3.4195/4245 to the dollar. SBB Securities senior investment analyst Ng Jun Sheng said the local bourse continued to show strong upward momentum with investors expecting more mergers and acquisitions to drive the market higher.
The interest came after Binariang GSM yesterday announced the largest corporate buyout in Southeast Asia for Maxis Communications, at 16.4 billion ringgit. Looking ahead to next week's trading, Ng said any profit-taking, which is likely, should be well-absorbed as the market is still flushed with liquidity and there could still be some upside on a weekly basis.
"On a five-year basis, the local market is still far behind other regional markets which have risen by more than 100 percent, against the local bourse's 80 percent rise during the period," said Ng.
Maxis finished the day sharply higher, near Binariang's offer price of 15.60 ringgit to minority shareholders. It gained 2.30 ringgit to 15.30. Maxis' sister company Astro fell 0.05 ringgit to 5.15 on profit-taking after it said it will hike subscription fees by 15 percent on average.
Index heavyweights closed mixed as Tenaga was down 0.10 ringgit at 11.80, Maybank gained 0.10 to 12.30 and Telekom Malaysia rose 0.20 to 11.00.
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