Malaysia's key share index closed 0.8 percent up on Monday, its second straight day of gains, as foreign funds chased heavyweights like Maybank and Tenaga on persistent speculation of a ringgit revaluation. The benchmark 100-stock Kuala Lumpur Composite Index closed 7.12 points up at the day's high of 915.90.
Overall volume was 601 million shares worth about 1.2 billion ringgit ($316 million). Decliners beat gainers by 477 to 307.
"Generally, our market is in a short-term consolidation. It's building a base at the current level, and momentum should push the index high by year-end," said Wan Ahmad Satria Wan Hussein, Mayban Securities head of dealing.
"The main thrust is still speculation about the ringgit peg."
The main index rose more than 3 percent over the past week as foreigners bought Malaysian assets on speculation the ringgit, pegged at 3.8 to the dollar since 1998, would be ravalued soon.
Dealers said speculation of a revaluation persisted, despite government statements to the contrary, because investors felt the government would not want to telegraph its intentions.
Although the government has said the ringgit is not "materially misaligned" against other currencies, a weak dollar has supported talk of a peg review.
Malaysia has said the peg may be reviewed if the ringgit moved 20 percent either way against the currencies of regional trading rivals or if the dollar fell to $1.40 per euro and below 100 yen.
Top lender Maybank and power utility Tenaga Nasional rose 3.5 percent and 1.8 percent, respectively, accounting for more than half of the index's gains.
Magnum Corp, the country's biggest lottery operator, rebounded from last week's fall to end 1.2 percent up at 2.45 ringgit on reports that the company could revive its Indonesian gaming venture.
The stock lost 7.0 percent on Friday after the firm posted a third quarter loss and warned its gaming business was likely to report lower profits for the full year.
Other smaller stocks also rose. Online recruitment firm JobStreet Corp Bhd rose on its debut, finishing the day at 99.5 cents against its issue price of 54 cents.
Lion Corp, part of the newly restructured but diversified Lion group, jumped 15.7 percent to 1.62 ringgit, the highest close in almost four years.