Malaysian share prices closed 0.31 percent lower on Friday following Wall Street's lacklustre performance overnight and on concerns over inflation after fuel price hikes, dealers said.
They said the prospect of a further rise in international oil prices, which was partially to blame for New York's falls, added to the negative local tone.
The Kuala Lumpur Composite Index shed 2.85 points to 916.93 on volume of 792.72 million shares worth 1.10 billion ringgit (295.93 million dollars).
Gainers outnumbered losers 445 to 333, with 297 stocks unchanged and 247 untraded.
The ringgit was traded at 3.7170 to the dollar and 4.4518 to the euro.
The government on Friday announced that two licenses for third-generation (3G) cellular services had been awarded to Malaysian companies MiTV Corporation and TTDotcom.
Among blue chips, Tenaga Nasional and Telekom Malaysia were down 0.10 ringgit at 8.40 and 9.55 respectively, while Malayan Banking gained 0.10 to 10.80.
Mobile operator DiGi.com lost 0.90 to 7.85, after its unit DiGi Telecommunications failed to secure a 3G spectrum license, dealers said.
Time Engineering and its unit Time dotCom were both higher after unit TTDotcom won a 3G license, dealers said.
Time Engineering gained 0.09 to 0.39, while Time dotCom rose 0.18 to 0.65.