Malaysian share prices closed 0.12 percent higher on Monday, helped by reports of investments worth some four billion dollars to develop an economic hub in the country's south, dealers said. The Kuala Lumpur Composite Index gained 1.13 points to 935.85 on turnover of 492.46 million shares worth 626.46 million ringgit (179 million dollars).
Winners led losers 363 to 335, with 315 counters unchanged. At the close, the ringgit was quoted at 3.6575/6625 to the dollar. Prime Minister Abdullah Ahmad Badawi said investors were prepared to spend 15 billion ringgit (4.09 billion dollars) to develop the Southern Johor Economic Region in Malaysia southern Johor state, according to reports.
"The news of large foreign firms interested in investing a large amount in the Southern Johor Economic Region has definitely boosted market sentiment," said EON Capital head of research Pong Teng Siew. Pong said the news strengthened investor confidence in the government's measures to boost the economy through a five-year development plan. "The Johor economic region is expected to create 1 million new jobs and business opportunities. The market has definitely something to cheer about going forward," he added. Amongst blue chips, Tenaga Nasional was flat at 9.15 ringgit, Telekom Malaysia was unchanged at 9.05, and Malayan Banking fell 0.20 ringgit to 10.50.