Malaysian share prices closed easier changed on Monday as the launch of a massive development project for the northern peninsular provinces helped take the market off its lows, dealers said. The recovery of regional bourses after Wall Street's thrashing last week supported buying, which included thematic plays related to the water sector.
The Kuala Lumpur Composite Index was down 2.97 points or 0.2 percent at 1,352.41, off a low of 1,343.73. Volume was 1.95 billion shares worth 2.83 billion ringgit (815.6 million dollars) while gainers led losers 563 to 358 and 234 stocks were unchanged.
At the close, the ringgit was quoted at 3.4675/4710 against the dollar. "The market recovered some lost ground in line with the recovery in regional markets and also due to the unveiling of the Northern Corridor Economic Region (project)," said Cheah King Yoong, head of research at SJ Securities.
Cheah said while he believes domestic factors such as the 18-year development plan - a 177 billion ringgit government initiative to spur economic growth in four northern states - will support the market, continued weakness on Wall Street may be a drag.
Water-related stocks made significant gains with Kumpulan Perangsang Selangor up 0.60 ringgit at 2.69 on speculation it will soon be awarded a firm order for a water treatment plant project in central Selangor state. Among other water companies, Puncak Niaga jumped 0.44 ringgit to 4.46 while the Engtex Group was up 0.45 at 2.22.
Index heavyweights Telekom Malaysia added 0.15 ringgit to 10.10, Tenaga Nasional edged up 0.10 sen to 11.00 and Maybank was unchanged at 12.00. Proton gained 0.15 ringgit to 5.70 after its managing director said the national carmaker expects to return to profitability in the current financial year to March 2008.