Malaysian share prices closed flat on Wednesday, losing initial gains to profit-taking amid concern in regional markets over North Korea's missile tests, dealers said. However, underlying market sentiment, supported by strong export data for May, was still positive, and the reaction to North Korea's actions were likely to be temporary, they said.
The Kuala Lumpur Composite Index gained 0.90 points to 924.89 and volume traded was 707.74 million shares valued at 841.57 million ringgit (230.50 million dollars).
Losers outnumbered gainers 477 to 286, with 286 stocks unchanged and 277 untraded. The ringgit was at 3.6490/6540 to the dollar at the close.
"Overall market sentiment remains fairly solid, after the stronger export data for May. It has also been given a nudge by easing expectations of further rises in US interest rates," a local brokerage dealer said.
He said the negative reaction to the North Korean missile tests were a knee-jerk response, and that the market may see selective rebound and profit-taking Thursday. Among blue chips, Telekom Malaysia gained 0.05 ringgit to 9.05, Malayan Banking advanced 0.10 to 10.70 and Tenaga lost 0.05 to 9.15.