Malaysian shares erased gains of the previous session to end in the red zone on Thursday, on profit-taking activities.

The FTSE Bursa Malaysia KLCI, the main gauge of Malaysian stocks, shed 7.16 points, to end 0.46% lower at 1,542.74. The day range was between 1,541.45 and 1,551.59.

In economic news, Malaysia's central bank held the overnight policy rate steady at 3% on Thursday, in line with market expectations, according to a Thursday press release.

Malaysia's industrial production index rose 3.2% in March, faster than the 1.5% rise in the previous month, according to data released by the Department of Statistics Malaysia (DoSM).

Moreover, Malaysia's services producer price index edged up 0.6% in the first quarter, faster than the 0.5% rise in the preceding quarter, the DoSM said.

Furthermore, Malaysia's sales value of the Manufacturing sector rose 3.7% in March to 164.3 billion ringgit, softer than the 4.7% growth in the month prior, the official data showed.

In corporate news, shares of Capital A (KLSE:CAPITALA) gained over 3% after it received 99.99% shareholder approval for its PN17 regularisation plan.

IHH Healthcare (SGX:Q0F, KLSE:IHH) issued 1,852,000 shares pursuant to the exercise of options under the company's Enterprise Option Schemes.