Malaysian share prices closed 1.5 percent higher on Friday to hit a fresh record high with investors increasingly convinced there will be an interest rate cut in the US, dealers said.
"Asian markets are benefiting from the protracted effects of the subprime problems on the US economy. As US markets are going no where, funds are flowing into Asian markets to look for better returns," said Pong Teng Siew, the head of research of MIMB Investment Bank.
The Kuala Lumpur Composite Index closed up 20.08 points at 1,398.35. Trading volume was heavy at 1.91 billion shares, valued at 2.17 billion ringgit (650 million dollars) while advancers led decliners 663 to 222. At the close, the ringgit was quoted at 3.3480/3570 against the US dollar.
Shares of Tenaga Nasional slid 20 sen to 9.25 ringgit after the company reported lower-than-expected fourth-quarter net profit, hit by foreign exchange losses. Investors were also worried that higher power purchase costs and a potential increase in fuel costs may impact next year's outlook.
Maybank, Malaysia's largest bank, was unchanged at 11.60 ringgit and Telekom Malaysia lost 10 sen to 10.20 ringgit. AirAsia finished the day flat at 2.10 ringgit of a high of 2.14 ringgit. Southeast Asia's largest budget carrier said Thursday it is expecting the potential opening up of the money-spinning Kuala Lumpur-Singapore route in December to boost bottom-line.
Comments
Comments are closed.