Malaysian stocks seen down on politics, Wall St's fall

KUALA LUMPUR, June 30 (Reuters) - Malaysian shares are
expected to drift lower on Monday due to renewed political
concerns and losses on Wall Street.

Investors are expected to shun the Malaysian market after
opposition leader Anwar Ibrahim took refuge at the Turkish
embassy on Sunday due to fears he could be asassinated after
fresh accusations of sodomy.

The developments come at a time of heightened political
tension in Malaysia after the government's worst ever election
result earlier this year put pressure on Prime Minister
Abdullah Ahmad Badawi to quit.

Anwar, who was sacked as deputy premier and later jailed
for similar charges a decade ago, said the old charges were
trumped up and the new accusations were politically motivated.

"The biggest concern now is domestic political situation
would worsen," said a dealer from a local brokerage.

The stock market could suffer another steep fall if the
situation deteriorate, another dealer said.

On Friday, the Kuala Lumpur Composite Index (.KLSE) ended
down 1.1 percent at 1,190.54 points. The July futures index
KLIM8 put the index at 1,172.0 points.

Here are news stories and factors that may affect the
Malaysian stock market on Monday. > Malaysia's Anwar denies
aide's sodomy complaint [ID:nT273643] > Malaysian key party
head to step down [ID:nKLR76488] > Malaysia Anwar
seeks refuge after sodomy claim [ID:nKLR202077] > US
STOCKS-Market ends lower, Dow on cusp of bear market [.N] >
Oil hits record near $143 on rising investor flows [O/R]
> FOREX-Yen, Swiss franc gain as risk appetite fades
[USD/] > TREASURIES-Bonds shine as safe haven from mauled
stocks [US/] > Gold hits 1-month high on record oil, weak
stocks [GOL/] > SE Asian Stocks-Mostly lower on inflation
woes, Vietnam up[.SO] > Moody's release on TM International Bhd

[ID:nWLA5507] > Palm rises on record crude oil,
short-covering [ID:nKLR179697] > Malaysia Airlines hikes fuel
surcharges [ID:nKLR163518] > Malaysia's RAM assigns
rating to Plus SPV sukuk [ID:nKLR129216] > Genting launches UK
online gambling site [ID:nKLR30948]
(Reporting by Soo Ai Peng; Editing by Tomasz Janowski)