Malaysian shares prices closed 0.25 percent lower on Thursday on concerns that the economy may slow further following of weaker-than-expected July industrial production data, dealers said.
They said the market doubted whether a raft of measures announced by the government yesterday, including a freeze on fuel prices and a cut in road taxes, would be successful in curbing inflation. The Kuala Lumpur Composite Index lost 2.27 points at 916.80. Losers outnumbered gainers 377 to 306, with 329 stocks unchanged and 310 untraded.
Volume was 391.18 million shares worth 619.18 million ringgit (164 million dollars). The ringgit held steady at 3.7695 to the US dollar and 4.6849 to the euro. "Lack of follow-through support in blue chips led the market lower. Investors were waiting for the government to announce more people-friendly measures in the upcoming budget," a local brokerage dealer said. Among blue chips, Tenaga Nasional was down 0.10 ringgirk that there would be no electricity hike this year.
Telekom Malaysia was flat at 10.30 ringgit though J.P. Morgan said it is retaining its "overweight" recommendation on the stock despite the cuts made by the international research house on its forecast for the telecommunication company's earnings and target price, dealers said.
Maybank lost 0.10 ringgit to 11.30.