KUALA LUMPUR (Thomson Financial) - Malaysian shares are expected to open
lower on Monday, with palm oil stocks likely to lead the fall due to weak
commodity prices.
"The broader market is expected to correct further, with index heavyweight
plantation stocks remaining under pressure," said Kaladher Govindan, head of
research at TA Securities.
The benchmark crude plam oil futures contract for July delivery has
corrected by about 25.5 percent from its all-time high of 4,486 ringgit a tonne
recorded on March 4. The July contract finished at 3,341 ringgit a tonne on
Friday.
Sentiment will also remain rather bearish in the near term after the
government said it plans to review projects under its multi-billion-ringgit
development blueprint, Kaladher said.
The government will delay non-essential public projects and use the money
instead to build up food stockpiles amid a global food crisis, Prime Minister
Abdullah Ahmad Badawi said on Saturday.
Among the factors to watch, investors are expected to focus on Maybank after
Malaysia's largest bank said Friday it had requested that trading in its shares
be suspended until the close of trading hours on Monday, pending the
announcement of a material acquisition.
Abdul Wahid Omar, president and chief executive officer of Maybank, will
hold a news conference at 11 a.m. (0300 GMT) local time, according to a company
statement.
Maybank, the fourth-largest company on the Malaysian bourse by market value,
has embarked on an aggressive expansion overseas as it seeks to transform itself
into a regional bank.
Last month, Maybank surprised investors when it said it would pay a hefty
4.8 billion ringgit ($1.5 billion) for a 56 percent stake in Bank Internasional
Indonesia.
Analysts said the bank was paying a huge premium for the stake as it was
entering Indonesia, one of the fastest growing markets in the region, a bit late
in the day compared to its regional rivals.
On Friday, the Kuala Lumpur Composite Index (KLCI) closed down 8.38 points
or 0.7 percent at 1,271.48. In New York, the Dow Jones Industrial Average ended
up 48.20 points or 0.4 percent at 13,058.20.
($1 = 3.16 ringgit)
aipeng.soo@thomsonreuters.com
.
as/nt
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