Malaysian shares fell a third straight day on Wednesday, with investors sticking to the sidelines amid concerns about slower second-quarter earnings, the upcoming 2005 budget, and record-high oil prices.
The 100-stock blue chip Composite Index finished 0.08 percent lower at 824.88 points. Volume was a meagre 270 million shares worth 484 million ringgit ($127 million), with decliners leading gainers by 422 to 210.
Analysts had expected a cautious tone as firms roll out their financial numbers for the April-June period, saying a moderation in earnings was likely as economic growth could slow after gaining 7.6 percent in the year through the first quarter.
They also said investors were beginning to speculate on the contents of the 2005 budget, due to be unveiled on September 10.
Few winners are seen at this stage as the government pushes on with fiscal consolidation, but tobacco firms and breweries could face stiffer tarriffs, the analysts added.
Cigarette maker British American Tobacco fell 0.5 percent to break below the 50 ringgit level for the first time since end-June, after Standard & Poor's Asian Equity Research downgraded the share to "hold" from "accumulate", citing "limited upside after the stock's out-performance".
The stock lost 25 cents to 49.75 ringgit. Top lender Maybank, in negative territory for most of the session, clawed back losses to trade unchanged at 10.60 ringgit. The firm's earnings report is due by the end of this month, and analysts expect net profit to drop 8.0 percent in April to June quarter.
Bucking the trend was property firm Berjaya Land, which rose 0.6 percent to 89.5 cents, the second day of gains after parent Berjaya Group made a fresh proposal to issue loan stocks as part of plans to settle money it owes to Berjaya Land.