Malaysian share prices closed slightly higher on Wednesday as the market began to digest the US Federal Reserve's decision to keep its key rate unchanged, while the benchmark index gained support by defensive buying of large-cap blue chips, dealers said.
The Kuala Lumpur Composite Index closed up 2.18 points at 941.26 with losers leading gainers 364 to 260 and 368 stocks unchanged. Trading volume stood at 400.05 million shares worth 540.50 million ringgit (154.4 million dollars).
At the close, the ringgit was quoted at 3.6670/6720 to the dollar.
A local brokerage dealer said trading is expected to remain dull and rangebound tomorrow as investors continue to look for fresh leads before taking any solid positions in the market.
"The market seems to be quite stagnant, not having a clear direction," he said. Dealers said, investors will continue to watch corporate earnings results for leads and watch for further announcements of new projects under the Ninth Malaysian Plan (9MP) especially in the South Economic region of Malaysia's southern Johor state.
EON Capital head of research Pong Teng Siew said investors remained bullish on the country's bio-diesel potential and a government policy shift toward domestic spending under the 9MP to spur economic activity.
TA Securities, in a note to its clients, said narrow-range trading is likely to stretch for another day as investors continue to digest the implications of the decision by the US to leave the key Fed rate unchanged. Scomi Marine firmed 0.05 ringgit to 1.11 ahead of the announcement by parent Scomi Group of a "corporate exercise" to raise up to 600 million ringgit by listing of its oilfield services divisions on the Singapore Exchange. Among blue chips, Maybank rose 0.10 ringgit to 10.80 while Telekom and Tenaga Nasional were flat at 9.10 and 9.15 respectively.