Malaysian Stocks - Market seen up; Telekom in focus

KUALA LUMPUR, May 23 (Reuters) - Malaysian stocks are
expected to rise on Friday, snapping three straight days of
losses after U.S. stocks rebounded on Thursday. Dealers said
any gains were likely to be limited.

Dominant fixed-lined operator Telekom Malaysia (TLMM.KL)
may lose ground after the company said first-quarter net profit
fell 12.8 percent on higher borrowing and operating costs.

Dealers said sentiment is expected to remain weak due to
lingering worries about the health of the US financial sector.

"I expect the market to stage a mild rebound today," said
Stephen Soo, analyst of TA Securities.

"It will just be a weak technical rebound. We don't expect
any strong gains because we think investors will remain
sidelined amid a lack of fresh catalysts," he said.

A turmoil in the ruling UMNO party following former premier
Mahathir Mohamad's decision to quit the party earlier this week
in an attempt to force its successor to step down, will
continue to weigh on sentiment, dealers said.

The Kuala Lumpur Composite Index (.KLSE) ended Thursday
down 0.3 percent to 1,277.57. The stock index futures put the
May contract KLIK8 at 1,277 points.

Here are news stories and factors that may affect the
Malaysian stock market on Friday. ----------------------MARKET
SNAPSHOT @ 2343 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1394.35 0.26% 3.640
USD/JPY JPY= 104.04 -0.08% -0.080
10-YR US TSY YLD US10YT=RR 3.9245 -- 0.002
SPOT GOLD XAU= 919.6 -0.14% -1.250
US CRUDE CLc1 130.75 -0.05% -0.060
DOW JONES .DJI 12625.62 0.19% 24.43
ASIA ADRS .BKAS 164.21 1.26% 2.04
------------------------------------------------------------- >
US stocks-Wall St ekes out gain as oil pulls back [.N] >
Oil pulls back after hitting record above $135 [O/R] >
Dollar rises on profit-taking, but oil prices weigh [USD/] >
Bonds fall in fear of inflation impact on rates [US/] >
Gold ends lower after 1-month high on profit-taking [GOL/] >
SE Asian - property stock fall, resource firms up [.SO] >
TMI dampens talk of bigger india telco stake [ID:nSP269453] >
Transmile to issue shares to repay loans [ID:nKLR291939]
> Telekom Malaysia Q1 net profit down 12.8 pct
[ID:nKLR171639] > Malaysia's central bank reserves at $125.1
bln [ID:nKLA007566] > Total signs accord for Malaysia offshore
blocks [ID:nKLR203055] > Malaysia auto sales up 49.3 pct in
April on year[ID:nKLA007565] > Parkson says HK unit to issue
new shares [ID:nKLR137519]
(Reporting by Soo Ai Peng; Editing by Jalil Hamid)