KUALA LUMPUR: Blue chips gave up part of their early gains at the midday break on Thursday in the absence of strong follow-through buying support as investors mulled over the impact of the lower lending rates on companies, banks and the broader economy.
Analysts said the 75 basis points cut in the overnight policy rate yesterday exceeded consensus of a 25 basis points to 50 basis points reduction, reflecting Bank Negara’s concerns over the vulnerability of the Malaysian economy, which was still largely export oriented.