Malaysian shares mixed in early trade ahead of FOMC meeting, volume thin

Malaysian shares mixed in early trade ahead of FOMC meeting, volume thin

	Published : Tue, 18 Sep 2007 02:54 By : Agencies Print this Story

KUALA LUMPUR (Thomson Financial) - Malaysian shares were mixed in early trade Tuesday with trading volume remaining low as investors stayed on the sidelines ahead of the outcome of the Federal Reserve's monetary policy meeting tonight.

At 9.18 am, the Kuala Lumpur Composite Index (KLCI) was up 2.90 points or 0.2 percent at 1,281.24.

The FTSE Bursa Malaysia 30-large cap index gained 25.98 points or 0.3 percent to 8,152.75 while the second board index was unchanged at 103.11.

Losers led gainers 120 to 110, with 146 stocks unchanged and 952 counters untraded.

Trading volume was 48 million shares, valued at 59.92 million ringgit.

'All eyes are on the FOMC meeting today with the Fed pressured to cut interest rates to shore up confidence,' analysts at OSK Investment Bank said.

OSK said it is pegging the KLCI's next support level at 1,270 points.

Among index heavyweights, shares of national power supplier Tenaga were lower after it was reported that state oil company Petronas is seeking for an increase in gas price. It fell 5 sen or 0.5 percent to 9.60 ringgit.

Tenaga currently buys natural gas from Petronas at a subsidized price of 6.40 ringgit mmbtu (million British thermal units). About 60 percent of the country's electricity is generated by gas.

Industrial gas distributor Petronas Gas, a unit of Petronas, added 10 sen or 1 percent to 10.60 ringgit.

State-run Telekom Malaysia was flat at 9.50 ringgit and Malaysia's largest bank Maybank gained 10 sen or 0.9 percent to 11.40 ringgit.

Southeast Asia's largest budget carrier AirAsia extended its fall on concerns the Thai budget airline crash on the resort island of Phuket on Sunday will dampen travel demand in the region. AirAsia was down 2 sen or 1.1 percent at 1.83 ringgit.

Eighty-nine people were killed when the budget carrier One-Two-Go crashed in poor visibility.

(1 US dollar = 3.49 ringgit)

aipeng.soo@thomson.com

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