Malaysian Shares Market close lower on political concerns

KUALA LUMPUR (Thomson Financial) - Malaysian shares bucked the regional trend and closed lower on Wednesday as political concerns weighed on the market. A small Malaysian party said Wednesday it will table a no-confidence vote against Prime Minister Abdullah Ahmad Badawi on Monday, in an unprecedented move that could spark more revolt against the premier. "People have lost confidence in the present leadership of Abdullah Ahmad Badawi," Chua Soon Bui, vice-president of the Sabah Progressive Party (SAPP), said in a statement. The east Malaysian party, which has two members of parliament in the 14-party ruling coalition, has little political clout but there are concerns this could spark a chain reaction from other coalition members. The vote comes as Abdullah grapples with a challenge to his leadership from within his own party and public anger against the rising cost of living. Abdullah's Barisan Nasional coalition suffered its worst election setback in 50 years in March, losing its two-thirds parliamentary majority and surrendering five states to the opposition. The Kuala Lumpur Composite Index (KLCI) was down 15.17 points or 1.2 percent at 1,212.59. The FTSE Bursa Malaysia 30-large cap index lost 98.56 points or 1.2 percent to 7,836.64 while the FTSE Bursa Malaysia second board index dropped 15.01 points or 0.3 percent to 5,596.13. Decliners led advancers 530 to 150, with 237 stocks unchanged and 489 untraded. Trading volume was low at 475 million shares valued at 1.2 billion ringgit. ($1 = 3.24 ringgit)