The Kuala Lumpur Composite Index fell 0.70 points to 899.79 on volume of 366 million shares worth 547 million ringgit (145 million dollars) as gainers outnumbered losers 384 to 317. The market was also largely flat on the year, falling 7.64 points or 0.84 percent from 907.43 at the end of 2004 even as the region posted several record-breaking performances.
The ringgit was at 3.7799 to the US dollar and 4.4720 to the euro. "It was a surprise that local funds failed to push up the key index. I suspect they have tried but failed thanks to foreign funds that were selling," a local brokerage dealer said.
Among blue chips, Tenaga Nasional was down 0.05 ringgit at 9.90 and Telekom Malaysia was flat at 9.55. Banking stocks were lower on concerns that a possible 25 to 50 basis points interest rate hike in 2006 could cloud earnings prospects for local businesses, which would likely dampen loan growth, dealers said.
Malayan Banking was down 0.10 ringgit at 11.10, AMMB Holdings lost 0.04 to 2.37 and Public Bank lost 0.10 to 6.55.
Carmaker Proton Holdings gained 0.20 ringgit to 6.55 on renewed hopes that the company may be able to reach a deal with Volkswagen AG, dealers said.
Mobile phone operator Maxis Communications gained 0.05 ringgit to 8.40 on speculation it may announce the acquisition of a stake in India's Aircel.