Malaysian share prices closed 1.03 percent lower on Monday due to a plunge in US markets and concerns over a hike in global interest rates, dealers said. The Kuala Lumpur Composite Index lost 14.44 points at 1,377.13, off a low of 1,374.65, on volume of 1.49 billion shares worth 2.1 billion ringgit (606.9 million dollars).
Gainers led losers 456 to 449. At the close, the ringgit was quoted at 3.4655/4705. "Today's drop is not that bad. I see it as a reasonably comfortable correction considering how high it has gone up recently," said SJ securities head of research Cheah King Yoong. "Obviously, the fall on Wall Street was a major factor in today's fall, but concerns over a rise in global interest rates, including China, further dampened the local bourse," he said.
Cheah added that investors are concerned that an interest rate hike would "suck liquidity out of global markets." At the close, big caps and blue chips led the losers. Telekom Malaysia lost 0.30 ringgit to 10.50, Tenaga fell 0.30 to 11.40 and Maybank was down 0.10 at 12.40.
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