Shares Fall on Profit-Taking
May 15, 2011
The Kuala Lumpur Stock Exchange Composite Index fell 12.37 to 1106.20. Volume was 170.1 million shares valued at 1.49 billion ringgit. Traders said that news that Malaysia's money supply growth increased in July did not affect the market, despite the fact that it could indicate rising interest rates. Most analysts agreed that investors had already begun selling stocks when the news was announced during the trading session. The money supply figure may push investors out of stocks and into currency, where they can continue to get strong returns from high interest rates, without the risks posed by the volatile stock market. Economists predicted interest rates will remain at current levels, or push just a bit higher, on the news. Investors reacted to Cornertown's losses on Friday by pushing the Composite Index off Friday's close of 1118.57. The Emas Index, which tracks all main-board shares, closed at 319.16, down 2.70. The Second Board Index, which tracks smaller shares, ended at 536.46, down 0.62. Decliners led advancers 379 to 181, with 132 unchanged and 73 untraded. Among the blue-chip shares that closed lower were Dizon Darcel, which lost 0.25 ringgit to 8.20 ringgit, and Genting, which lost 0.40 ringgit to 18.00 ringgit.
