KUALA LUMPUR, April 16 (Reuters) - Malaysian stocks are
expected to rise on Wednesday with tech shares leading the way
after Intel Corp (INTC.O) affirmed its 2008 profit margin
target, reassuring investors worried about chip prices and the
impact of a weak U.S. economy.
The United States is Malaysia's biggest export market and
electronics accounted for half of Malaysia's overall exports.
Analysts said Malaysian semiconductor makers such as MPI
(MPIM.KL) and Unisem (UNSM.KL) could rise on the news. The
stocks had also been battered significantly over the past year.
"We expect the stocks to continue to rise this year as they
are currently undervalued," said one analyst.
Steel makers such as Kinsteel (KSTE.KL) may also rise on
expectations that the government would soon allow higher
ceiling prices for some steel products.
On Tuesday, the benchmark Kuala Lumpur Composite Index
.KLSE edged up 0.9 percent to close at 1,244.20 points, led
by palm oil producers such as Kuala Lumpur Kepong (KLKK.KL),
IOI Corp (IOIB.KL) and Sime Darby (SIME.KL).
The April futures index KLIJ8 put the index at 1,246.0
points.
U.S. stocks gained on Tuesday as record oil prices lifted
energy shares and stronger-than-expected quarterly results at
several U.S. regional banks boosted shares of financial
companies.
The Dow Jones industrial average .DJI gained 60.41
points, or 0.49 percent, to end at 12,362.47, while the
Standard & Poor's 500 Index .SPX climbed 6.11 points, or 0.46
percent, to 1,334.43. The Nasdaq Composite Index .IXIC rose
10.22 points, or 0.45 percent, to close at 2,286.04.
(Reporting by Jalil Hamid; Editing by Jacqueline Wong)
