Malaysian shares closed in the green zone on Monday, reversing losses of the previous session, indicating positive investor sentiment in anticipation of Bank Negara's lending policy rate decision later this week, which is expected to remain stable.

The FTSE Bursa Malaysia KLCI, the main gauge of Malaysian stocks, gained 1.25 points to end 0.08% higher at

1,539.27. The day ranged between 1,537.03 and 1,547.10.

Malaysia's short-term interbank rates closed steadily today. Liquidity in the traditional system fell to 36.34 billion ringgit versus 38 billion ringgit, while liquidity in Islamic funds dropped to 18.75 billion ringgit from 19.89 billion ringgit.

In corporate news, shares of the information and communications technology company Vstecs (KLSE:VSTECS) jumped over 8% on Monday's close, and those of the carpet maker Paragon Union (KLSE:PARAGON) rose over 6%.

Meanwhile, shares of the direct marketing company Amway (Malaysia) (KLSE: AMWAY) rallied nearly 5% at the market close.