Malaysia Stocks - Market seen flat, steel firms in focus

(Adds factors to watch at bottom)

KUALA LUMPUR, May 12 (Reuters) - Malaysian shares are
expected to slip sideways on Monday, though steel stocks are
likely to be in focus after a government decision to free up
supplies into the local market.

The government said on Friday it would scrap ceiling prices
for domestically produced steel and also waive import duty as
part of a market-liberalisation plan designed to ease supply
shortages. The measures are due to take effect on Monday.

Stocks such as steel firms Ann Joo Resources (ANNJ.KL) and
Lion Industries (LLBM.KL) could benefit from the measures, one
dealer said, though investors were still unsure how they would
affect the wider construction industry.

"There could be some renewed interest in steel stocks now,
but a lot of people might be confused on the announcement. It
may be that the beneficiary could be the builder," he said.

Another dealer, with a foreign brokerage, agreed that steel
stocks should rise, along with cement firms, which include YTL
Cement (YTLC.KL) and Lafarge Malayan Cement (LMCE.KL). But he
said builders and property firms were likely to lose ground.

Malaysia's top builders include IJM Corp (IJMS.KL) and
Gamuda (GAMU.KL).

Palm-oil stocks, which include Sime Darby (SIME.KL) and IOI
Corp (IOIB.KL), could also firm on higher crude palm-oil
prices, the second dealer said.

On Friday, the benchmark Kuala Lumpur Composite Index
.KLSE closed up 0.38 percent at 1,285.27 points, helped by
gains in Malayan Banking (MBBM.KL) and Public Bank (PUBM.KL).
---------------MARKET SNAPSHOT @ 23:07 GMT ------------------
INSTRUMENT LAST PCT CHG NET CHG S&P 500
.SPX 1,388.28 -0.67% -9.400 USD/JPY JPY=

102.86 -0.11% -0.110 10-YR US TSY YLD
US10YT=RR 3.779 -- 0.000 SPOT
GOLD XAU= $884.50 0.07% 0.600 US CRUDE
CLc1 $125.91 -0.04% -0.050 DOW JONES .DJI

12745.88 -0.94% -120.90 ASIA ADRS .BKAS
162.65 -0.76% -1.24
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>AIG's loss and record oil sour mood on Wall St
[.N] >FOREX-Dollar down as credit market concern rises
[USD/] >TREASURIES-Prices edge up on renewed credit concerns
[US/] >Platinum hits 2-week high; gold firms on dollar, oil
[GOL/] >Oil hits record $126 on supply worry, fund buying

[O/R] >SE Asian Stocks-Mostly higher on week but Singapore
falls [.SO] >Malaysia says subsidies to hit $15.7 bln in '08
[ID:nKLR124899] >Foreigners may pay more for petrol in
M'sia-paper[ID:nKLR209842] >Malaysia unveils anti-inflation
plan -papers [ID:nKLR191452] >Malaysia waives steel import
duty, price ceilings[ID:nL09242959] >Palm oil up on vegoils,
dim export outlook weighs[ID:nKLR166185] >Malaysia's MISC to
post slight rise in Q4 net [ID:nKLR103543] >Woori to issue up
to 500 mln ringgit bonds-source[ID:nHKG216090] >Malaysia's
Bumi-Commerce Q1 net falls 13 pct [ID:nKLA007478]
>Malaysia's RHB gains on Abu Dhabi alliance
[ID:nKLA007476] >ANALYSIS-Fight over money follows Malaysia
poll [ID:nKLR211898]

IJM IN TALKS FOR 5 BLN RGT WORTH OF ADDITIONAL JOBS

Malaysian construction firm IJM Corp (IJMS.KL) is in talks
for 5 billion ringgit worth of contruction jobs in addition to
its exsisting order book of 6.5 billion ringgit, the Business
Times said on Saturday, citing a Credit Suisse report.

Half of the new jobs are from overseas, Credit Suisse said
after meeting with the firm's management.

TM INTERNATIONAL EYES ACQUISITIONS IN ASIA

TM International Bhd TMIT.KL, formerly the mobile-phone
arm of Telekom Malaysia (TLMM.KL), is looking to buy stakes in
Asian firms to boost revenues, the Star newspaper reported on
Saturday, quoting Chief Executive Jamaludin Ibrahim.

"TMI will acquire stakes in two to four more companies from
now till 2015," Jamaludin said, referring to companies in
Southeast Asia, Pakistan and Iran. He gave no further details.

MCC IN JV FOR POWER PLANT, PORT IN SAUDI JAZAN ECONOMIC
CITY

MMC International, a unit of engineer Malaysian Mining Corp
(MMCB.KL), signed agreements to take 50 percent stakes in both
power plant and port facilities in Saudi Arabia's Jizan
Economic City, the firm's chief executive said in a statement
late Friday.

"These investments will generate a significant recurring
income stream for MMC International and the group," Chief
Executive Feizal Ali said. The value of port and power plant
facilities were not disclosed.

(Reporting by Mark Bendeich, editing by Faisal Aziz)