Malaysian shares closed little changed on Monday after late bargain-hunting offset initial weakness and kept the benchmark index in positive territory, dealers said. The market opened weak on profit-taking after last Friday's run-up following the government's decision to scrap the fixed ringgit peg in favour of a managed float, they said.
Banking and semiconductor stocks fell on profit-taking, but airline stocks gained as the new ringgit float was perceived to be earnings-positive.
The Kuala Lumpur Composite Index was up 0.15 points at 939.84. Decliners outnumbered advancers 481 to 280, and volume totalled 512.73 million shares worth 988.11 million ringgit (261 million dollars).
"The market was little changed after late bargain-hunting offset initial weakness," a local brokerage dealer said.
"It opened weaker in the morning as some investors took profit after last Friday's sharp run-up. Thereafter the market drifted within a narrow range in the absence of positive news."
Looking ahead, he said he expected the market to continue trading in a tight band Tuesday given the lack of fresh catalysts.
Among blue chips, Tenaga Nasional was flat at 11.30 ringgit while Telekom Malaysia fell 0.20 to 11.0 and Malayan Banking eased 0.10 at 11.50.
Bursa Malaysia was flat at 4.30 after earlier gains while Cepatwawasan Group Bhd rose 0.025 to 0.99 on speculative interest, dealers said.
AirAsia gained 0.02 to 1.79 as the ringgit depeg was seen as positive for the budget airline's earnings. Likewise, Malaysia Airlines gained 0.02 to 3.74.
However, plantation firm IOI Corp, a major exporter, was down 0.20 at 10.90 on expectations that its earnings may fall following the ringgit depeg.