Malaysian share prices closed 0.9 percent higher on Thursday as gains in plantation, industrial firms and select blue chips offset profit-taking of other stocks, dealers said. They said investors sold into strength following Wednesday's sharp rise sparked by the large cut in US interest rates.
The Kuala Lumpur Composite Index was up 11.51 points at 1,308.67 and volume was a low 798 million shares worth 1.4 billion ringgit (405.8 million dollars) while decliners led gainers 450 to 331 and 285 stocks were unchanged.
At the close, the ringgit was quoted at 3.4465/4495 to the US dollar. "The market remains cautious and is looking for new direction," said Cheah King Yoong, head of research at SJ Securities. "The trading pattern suggests that blue chips will drive the market going forward as many of them are at bargain prices following the sharp selldown in August," he said.
Cheah said the mixed trade seen currently was partly due to retail players staying on the sidelines, "licking their wounds" after the August falls. He sees the current high crude oil price continuing to be a source of support for plantation stocks.
Palm oil stocks have risen recently on expectations that the crude palm oil price is likely to stay firm after the recent surge in global crude oil prices. Palm oil is used as feedstock in producing biofuel, an alternative to crude. Plantation firms IOI Corp gained 0.10 ringgit to 5.90 while Kuala Lumpur Kepong rose 0.50 to 12.80. Index heavyweights were mixed, with Telekom Malaysia up 0.10 at 9.55 ringgit, Maybank declining 0.10 to 11.50 and Tenaga falling 0.10 to 9.55.
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