Share prices on Bursa Malaysia rose sharply after the announcement of former deputy prime minister Anwar Ibrahim's acquittal, a dealer said.

Bernama reports that at 12.30pm the benchmark Composite Index jumped 18.84 points to 847.22 diminishing losses in the early morning session. Huge gains in most blue chips on renewed buying interest lifted market indices.

The Emas Index gained 4.00 points to 200.90, the Second Board Index rose 1.12 points to 109.73 and the Technology Index added 0.96 of a point to 44.88.

The Industrial Index advanced 30.39 points to 1,827.69 and the Finance Index gained 199.35 points to 6,994.68.

Gainers overwhelmed losers 584 to 115, 188 counters were unchanged, 387 counters not traded and 52 counters suspended.

Turnover stood at 267.020 million shares valued at RM637.286 million.

Heavyweights, Maybank gained 40 sen to RM11.10, Telekom rose 10 sen to RM11.10, Tenaga Nasional advanced 30 sen to RM10.30 and Commerce Asset-Holding increased 16 sen to RM4.64.

'Positive indication'

The Federal Court at 10.30am today allowed Anwar's appeal against his conviction and sentence for sodomy, in a 2-1 majority decision.

Stock analysts said that the huge jump in share prices reflected the positive reaction among foreign investors to the Federal Court's decision.

"It reflects fair play which is viewed positively by foreign investors," an analyst said.

Mayban Securities said that whether the sudden rise in share prices could be sustainable would depend on whether there would be follow through buying in the next couple of days.

"This is a positive initial indication. However, investors will like to see further developments on the political and economic scenario in Malaysia which will most likely dictate the market trend going forward," said an analyst there.