Malaysian share prices closed 0.27 percent lower on Tuesday on concerns about inflation fuelling rising interest rates and the spread of bird flu, dealers said.
They added that trading continued to be sluggish amid light selling by foreign investors and in the absence of market-stimulating news.
The Kuala Lumpur Composite Index fell 2.43 points to 909.10 on volume of 215.80 million shares worth 451.19 million ringgit (119.44 million dollars) while losers outnumbered gainers 427 to 206.
The ringgit was traded at 3.7775 to the US dollar and 4.4297 to the euro.
"Investors were sidelined by inflation worries and reports of bird flu outbreaks circulating in the region," a local brokerage dealer said.
"In the midst of foreigners' selling, the market lacked catalysts to start an early year-end rally."
He added that the manufacturing sector-driven positive industrial production index for September, which rose 4.9 percent year-on-year and was up 2.3 percent from August, was clouded by next year's potential fuel price hike, increased electricity tariffs and rising interest rates.
Among blue chips, Tenaga Nasional was down 0.15 ringgit at 9.85, while Telekom Malaysia and Malayan Banking were both flat at 9.45 and 11.10 respectively.
Genting and unit Resorts World were both lower on profit-taking after rising sharply in the past two trading days on interest from some institutional funds, dealers said.
Genting fell 0.10 to 21.40, while Resorts dropped 0.40 to 10.90.