Malaysian share prices closed one percent higher on Monday as investors took their cue from a rally on Wall Street at the end of last week, dealers said.The Kuala Lumpur Composite Index (KLCI) ended the session up 12.35 points at 1,280.0, off a high of 1,288.14.
Advancers led decliners 513 to 204, with 242 stocks unchanged and 465 untraded. Trading volume was 674 million shares, valued at 1.4 billion ringgit (437.5 million dollars). "The current rally is not convincing as volume remains lacklustre," said Tee Sze Chiah, an analyst at Aseambankers.
Kaladher Govindan, head of research at TA Securities, is advising investors to "sell on strength.""In my view, the current about-turn in the direction of the KLCI and the bullishness reflected in technical indicators are more signs of a bear market rally that is not sustainable, rather than a lasting recovery."
Sime Darby, the world's largest oil palm grower, jumped 3.7 percent to 9.90 ringgit on a media report that its engineering unit had secured a one billion ringgit fabrication contract from Petronas Carigali.
IOI Corp, the second-largest plantation company in Malaysia, was up 0.7 percent at 7.55 ringgit. Gaming and power group Tanjong rallied 3.1 percent to 16.50 ringgit. Telekom Malaysia was flat at 11.10 ringgit. Malaysia's top bank, Maybank, climbed 1.2 percent to 8.25 ringgit.