Malaysian share prices closed 0.5 percent lower on Thursday as US interest rates remained unchanged and despite an injection of funds into the country's major development plan, dealers said.
The Kuala Lumpur Composite Index dropped 5.22 points to 1,203.89 with 256 gainers, 324 losers and 269 unchanged amid a volume of 399.218 million shares worth 1.03 billion ringgit (316 million dollars)
Prime Minister Abdullah Ahmad Badawi on Thursday said the government will spend another 30 billion ringgit on its five-year development plan, to cover the costs of inflation, rural projects and increased food production. Officials also said some high-profile infrastructure projects would be shelved, including a monorail and a new highway in the northern island state of Penang.
Abdullah said the government would add the 30 billion ringgit to an original 200 billion ringgit allocation as part of a mid-term review of the 9th Malaysia Plan.
The five-year development blueprint is aimed at achieving 6.0 percent growth annually until 2010. "Concerns over slowing economic growth, rising inflation and the resulting erosion of corporate earnings continue to hound sentiment," a dealer told Dow Jones Newswires.
"The market is likely to drift within 1188-1214 rangee in the near term," he added Among heavyweights, top lender Maybank ended 0.05 ringgit lower at 7.20, Telekom Malaysia was stable at 3.30 while national utility company Tenaga Nasional dropped 0.10 ringgit to close at 8.15.