Although figures on Tuesday showed the industrial production index for September had risen 4.9 percent year-on-year, the results were clouded by potential fuel, electricity and interest rate hikes next year, they said.
The Kuala Lumpur Composite Index fell 2.55 points to 906.55 and volume traded was 251.30 million shares worth 585.97 million ringgit (155.12 million dollars), while losers outnumbered gainers 384 to 236.
The ringgit was traded at 3.7775 to the US dollar and 4.4442 to the euro.
"Foreign funds continued to reduce their positions in the market. There were not enough corporate developments to drive the trading. Selling pressure was significantly milder today compared with yesterday," a local brokerage dealer said.
All key blue chips were flat, with Tenaga Nasional, Telekom Malaysia and Malayan Banking closing at 9.85, 9.45 and 11.10 ringgit respectively.
PSC Industries was up 0.005 at 0.715 despite announcing its unit PSC Naval-Dockyard had received a letter of demand from the solicitors of Alliance Bank Malaysia Bhd for the repayment of 34.14 million ringgit in outstanding debt.
Plantation group IOI Corp was up 0.20 at 13.60 on an improved earnings outlook over expectations of stronger crude palm oil prices, dealers said.