Malaysian shares erase gains on the week's open to close in the red zone, as investors' interest was weighed down by higher than expected inflation during February.

The FTSE Bursa Malaysia KLCI, the main gauge of Malaysian stocks, shed 4.85 points to end 0.31% lower at 1,537.54. The day ranged between 1,532.73 and 1,540.23.

In corporate news, Malaysia's headline inflation rose to 1.8% on year in February from 1.5% in the preceding month, according to a Monday release from the Department of Statistics. The figure was above Reuters' consensus estimate for a 1.4% increase.

Malaysia's Leading Index rose 3.2% to 112.0 points in January 2024 from 108.5 points in January 2023, according to the Department of Statistics Malaysia (DOSM) on Monday.

Malaysia's Coincident Index, which tracks the current state of the economy, also showed positive signs. The CI rose 3.2% year-on-year to 124.1 points in February 2024 from 120.2 points in February 2023.

In corporate news, shares of Ge-Shen (KLSE:GESHEN) slumped about 15%, while shares of Superlon Holdings (KLSE:SUPERLN) zoomed over 7% on Monday's close.