Malaysian share prices closed 1.37 percent lower on Friday as selling pressure intensified in the afternoon session of trade, dealers said. They said investors were reluctant to commit to positions ahead of the weekend after the recent global sell-off.
The Kuala Lumpur Composite Index (KLCI) closed down 16.23 points at 1,164.68 on turnover of 1.79 billion shares worth 2.78 billion ringgit (794.86 million dollars) while losers led gainers 806 to 194, with 177 stocks unchanged.
At the close, the ringgit was quoted at 3.5070/5120 to the dollar. A senior analyst at KN Kenanga Securities said he views the recent decline positively even though the sell-off had been sharper-than-expected.
Head of retail research, Teoh Cheng Guan said, trading will remain volatile before the benchmark index stabilises. "Hopefully, the KLCI will hold firm above its previous low of 1,136 points level, otherwise it may retreat further to the 1,100-1,120 points level," Teoh said.
He also noted that the current bearish trend provided investors with good buying opportunities. SJ Asset Management's chief investment officer Meor Khairi Bazid said market sentiment is expected to remain volatile in the next two to three weeks before investors are able to fully digest the sell-off. However, he said the selling pressure has shown signs of slowing down, suggesting that forced selling from margin calls are also drying out.
Among index heavyweights, national utility firm Tenaga fell 0.10 ringgit to 11.60, Telekom Malaysia lost 0.20 ringgit to 9.90, while Maybank was steady at 12.20.