Malaysian share prices closed 0.36 percent higher on Wednesday with the market supported by news of government development projects worth some four billion dollars, dealers said. The gains were pared by profit-taking but stocks held in positive territory as investors counted on supported June inflation figures, they said.
The consumer price index figures for June were released after the market close, showing inflation holding steady at 3.9 percent in June. At the same time, sentiment remains cautious given the escalating violence in the Middle East and fears the conflict could spread.
The Kuala Lumpur Composite Index gained 3.30 points to 911.98. Volume was 885.17 million shares worth 1.02 billion ringgit (276 million dollars). Losers led gainers 392 to 322, with 302 stocks unchanged. The ringgit was at 3.6940/6990 at the close.
Dealer said investors would be looking for fresh news after the government Tuesday announced 880 infrastructure projects worth 4.07 billion dollars in the first phase of a five-year development plan.
"Profit-taking has definitely shown its ugly head and is showing signs of accelerating on Thursday," a local brokerage dealer said. "For the market to remain positive, I believe further news on the new projects announced under the plan needs to be forthcoming in the near future," the dealer added.
He said market direction remained unclear, citing the cautious stance by investors and uninspiring volumes Wednesday. Among blue chips, Tenaga Nasional, Telekom Malaysia and Malayan Banking closed flat at 9.10, 9.05, and 10.40 ringgit, respectively.