KUALA LUMPUR, April 17 (Reuters) - Malaysian stocks are
expected to rise for the third straight day on Thursday, led by
plantation stocks, after a strong Wall Street rally on solid
earnings by U.S. banks and technology firms.
Dealers said palm oil firms such as IOI Corp (IOIB.KL), and
Sime Darby (SIME.KL) and Kuala Lumpur Kepong (KLKK.KL), could
continue to rise on buoyant palm oil prices. The market has
risen 20 percent this year on firm Indian and Chinese demand.
"The stock market should be up today, with plantation
shares holding up the index," said a dealer at a local
brokerage.
"But overall volume is thin. Investors are still cautious
amid the country's political uncertainties."
On Wednesday, Deputy Prime Minister Najib Razak dismissed
the possibility of a snap election should a sufficient number
of ruling coalition members cross over to the opposition.
"We are not in a crisis in the sense that we are going to
be toppled anytime," he told reporters. "I don't believe that's
the case."
The benchmark Kuala Lumpur Composite Index .KLSE rose
0.76 percent to close Wednesday at 1,253.64 points. For the
year, the 100-share index has lost 13.2 percent, compared to a
two-percent drop in Bangkok's SETI index in neighbouring
Thailand.
The April futures index KLIJ8 put the index at 1,260.5
points.
U.S. stocks vaulted higher on Wednesday after Intel Corp
(INTC.O), J P Morgan Chase & Co (JPM.N) and other blue chips
reported earnings that reassured investors worried that a weak
economy would sap corporate profits.
All three major indexes ended up more than 2 percent.
The Dow Jones industrial average .DJI jumped 256.80
points, or 2.08 percent, to close at 12,619.27, while the
Standard & Poor's 500 Index .SPX rose 30.28 points, or 2.27
percent, to 1,364.71. The Nasdaq Composite Index .IXIC surged
64.07 points, or 2.80 percent, to close at 2,350.11.
(Reporting by Jalil Hamid; Editing by Clarence Fernandez)
