KL Shares End 1% Higher

Published: 2009/04/23

MALAYSIAN shares closed up 1 per cent today following lower than expected inflation figures, dealers said.The Kuala Lumpur Composite Index gained 10.06 points to close at 978.64 on turnover of 1.37 billion shares worth RM1.28 billion.

There were 554 gainers, 128 losers and 170 trading unchanged.“Lower interest rates are likely to drive fresh funds into equities with rising risk appetite,” a dealer told Dow Jones Newswires.

Malaysia today announced that March inflation hit 3.5 per cent, compared with a 3.7 per cent forecast by dealers.The lower inflation figure has raised hopes for another 50-basis point cut in the overnight policy rate on April 29.

Dealers also said that sentiment was spurred by the government's decision yesterday to remove the 30 per cent Bumiputera equity condition in 27 service sub-sectors with immediate effect."The government's decision has helped to lift interest among the investors locally which we believe is a move in the right direction with a bigger pie and more share for all," one of the dealers said.

The overall market remained positive as buying momentum continued from yesterday, helping to sustain the key index in positive territory, he said.At close, the Finance Index climbed 84.88 points to 7,455.51, the Plantation Index advanced 25.78 points to 4,957.08 and the Industrial Index went up 10.82 points to 2,231.09.Of the FTSE-BM series, the FBMEmas went up 79.87 points to 6,463.28, the FBM30 added 50.53 points to 6,259.29, the FBM2BRD gained 69.59 points to 4,139.24 and the FBM-MDQ surged 118.86 points to 3,549.20. - Agencies