Malaysian share prices closed 0.44 percent higher on Thursday amid mixed sentiment after authorities warned of a crackdown on speculative stock trading, dealers said. They said sentiment was punished after Bursa Malaysia queried broadband operator Mobif about unusual market activity, resulting in the stock falling by more than 50 percent.
However, the market held together for a positive finish on recent inflation data - here and in the US - and support from local institutions which remain bullish about the upcoming budget to be announced in two weeks time.
The Kuala Lumpur Composite Index closed up 4.10 points at 942.08 with losers leading gainers 482 to 243 and with 302 stocks unchanged. Trading volume was 562.37 million shares worth 838.26 million ringgit (239.5 million dollars). At the close, the ringgit was quoted at 3.6738/6788 to the dollar.
A local brokerage dealer said weaker sentiment in the broader market was due to concerns the authorities will down come hard on speculative counters after it queried Mobif for the unusual activity regarding its share price.
"Investors do not want to be caught in a situation where a counter is designated like Iris Corp shares months back. It is horrifying even to think of it, let alone be caught in such a situation," he added. "I believe the strong interest in heavyweight blue chips was coming mainly from local institutional investors who have a more bullish view of the market," said EON Capital Securities head of research Pong Teng Siew.
"Their bullish view stems from expectations that the country's upcoming budget will be positive in pump-priming the economy and businesses, providing a good impetus for the market," Pong added.
Mobif fell sharply by 1.83 ringgit to 1.77, following the query from the stock exchange about unusual market activity.
Among blue chips, Tenaga Nasional up 0.05 ringgit to 9.20, Maybank rose 0.10 ringgit at 10.70 while Telekom was steady at 9.05.