Malaysian share prices closed flat on Wednesday in listless trade amid a lack of fresh leads, dealers said. They said, however, that palm oil stocks held on to their gains on rising crude oil prices. Crude palm oil is used as feedstock in producing biofuel, an alternative to crude.
"The market is not going anywhere and the index is drifting. Investors are waiting on the sidelines ahead of the FOMC meeting next week," CMS Dresdner Asset Management fund manager Philip Tan said.
"There are not enough leads in the local market after the budget announcement. Now everyone is just sitting quietly, waiting for next week to come," the fund manager said. The Kuala Lumpur Composite Index (KLCI) was down 0.39 point or 0.03 percent at 1,285.94 on volume of 952.424 million shares, valued at 1.436 billion ringgit (410 million dollars). Losers led gainers 509 to 303.
At the close, the ringgit was quoted at 3.4945/4975 against the dollar. Index heavyweights ended the day mostly lower with national power company Tenaga falling 15 sen to 9.75 ringgit, state-run Telekom Malaysia dropping 15 sen to 9.60 ringgit and Malaysia's largest bank Maybank losing 20 sen to 11.40 ringgit. Loss-making national carmaker Proton gained 10 sen to 5.40 ringgit following media reports that Volkswagen AG may take a 20 percent stake in the Malaysian company, with a decision reportedly expected in February.