Malaysian stocks soared 8.81 per cent yesterday after the government followed Hong Kong's example and aggressively intervened in the market, brokers said. Strong buying from a state-run Muslim pilgrims fund helped Kuala Lumpur's benchmark Composite Index to bounce off Tuesday's 10.5-year low to close 27.81 points higher at 343.47, they said. Dealers said there were also rumours of buying by some other cash-flush government-linked institutions, such as the Employees Provident Fund and investment firm Khazanah, although on a far lesser scale. The result was the market's biggest one-day rise since February 3, when it shot up 23 per cent. 'We've had these one-day jumps before and experience has shown that if the volumes don't last, people will start rushing for the door,' an institutional sales director said. Prime Minister Mahathir Mohamad warned on Tuesday of possible future intervention by the government-run pilgrims fund, but gave no indication it would come so soon. The main index had shed more than 70 per cent in a year and was heading dangerously close to breaching the key 300-point barrier this week. Dealers said that while Hong Kong's moves were apparently part of an effort to protect the Hong Kong dollar, Malaysian intervention was aimed solely at propping up the market. Blue chips, particularly banks, conglomerates, plantation stocks, were the main beneficiaries of the buying in Malaysia, dealers said. Malayan Banking, Sime Darby and Telekom were among the biggest gainers. A firmer Japanese yen and strong gains on Wall Street and in Europe on Tuesday also helped to boost sentiments. Mohaiyani Securities research head Audrey Ho said: 'Some blue chips are very cheap at the moment. 'You can make the assumption that some of these companies are bound to survive the crisis.' Finance Minister Anwar Ibrahim yesterday insisted that the government would not dictate how and when the pilgrims fund bought stocks. 'It's up to the investments panel [of the pilgrims fund],' he said. The fund only invests in stocks it considers are acceptable to Islam. That excludes companies that deal in gaming, liquor and tobacco. Dr Mahathir also warned on Tuesday the government was considering a Taiwan-style moratorium to prevent banks from selling undervalued shares pledged as collateral. However, there have been no further movements as yet on this issue. Nizam Idris, an analyst at Independent Economic Analysis, said: 'The market has had hardly any good news for ages now. 'Any good news is a reason to buy the market, but Malaysia's fundamentals haven't changed. They're still lousy.'