Malaysian stocks seen down on political worries

KUALA LUMPUR, June 13 (Reuters) - Malaysian stocks are
expected to drift lower on Friday, ahead of a planned
opposition rally against the recent steep rise in fuel prices.

Lingering concerns that rising inflation will hurt emerging
market economies such as Malaysia will also weigh on sentiment.

Malaysian police increased security in the capital to stop
the rally expected to draw up to 20,000 people, state media
said on Thursday, reflecting fears about protests gathering
momentum.

The planned rally is seen as a major political test for
Prime Minister Abdullah Ahmad Badawi, already fighting for his
political survival since the governing coalition's dismal
electoral performance in March.

"Investors are worried about domestic political conditions.
If the situation gets worse, you may see more sellers stepping
in," said an analyst at a local brokerage.

Builder UEM World UEMW.KL could come under pressure after
media reported that the group may not be awarded the concession
for a multi-billion ringgit bridge project in northern Penang.

On Thursday, the Kuala Lumpur Composite Index .KLSE edged
down 0.3 percent to 1,225.54 points.

The June futures index KLIM8 put the index at 1,217
points.

Here are news stories and factors that may affect the
Malaysian stock market on Friday.

---------- --MARKET SNAPSHOT @ 00:09 GMT ------------------

INSTRUMENT LAST PCT CHG NET CHG

S&P 500 .SPX 1,339.87 0.33% 4.380
USD/JPY JPY= 107.85 0.01% 0.010
10-YR US TSY YLD US10YT=RR 4.223 -- 0.008
SPOT GOLD XAU= $870.25 0.28% 2.450 US
CRUDE CLc1 $136.70 -0.03% -0.040 DOW
JONES .DJI 12141.58 0.48% 57.81 ASIA
ADRS .BKAS 154.76 0.28% 0.43
-------------------------------------------------------------
> US STOCKS-Market rises on retail sales, BUD deal
[.N] > Oil rises on Nigeria strike threat
[O/R] > Dollar up on retail data, euro off on rate outlook
[USD/] > Bonds slide on unexpectedly strong retail sales
[US/] > Gold hits lowest level since early May
[GOL/] > SE Asian stocks - Thailand hits 4-mth low, Vietnam up
[.SO] > Malaysia's UEM World to sell land for $121 mln
[nKLA007658] > Malaysia tightens security ahead of fuel
protests [nKLR337388] > Malaysia c.bank to weigh impact of fuel
price rise [nSP261719] > Malaysia's Guoco raises Rank stake

[nL12117172] > Palm oil up 0.5 pct, but week
fundamentals weigh [nSIN252886] > Malaysia's April annual
factory output disappoint [nKLR319717] > Malaysia says in talks
to buy more Thai rice [nKLR323719] > Malaysia's Mutiara
forms JV for $237 mln projects [nKLR15549] > Malaysian Airlines
eyes hike in fuel surcharge [nKLA007656] > Malaysia PM faces
bigger protests,dissent over fuel[nSP122784]

MALAYSIA'S UEM GROUP WILL NOT MANAGE SECOND PENANG BRIDGE-
PAPER

The government has decided against awarding a concession to
UEM Group Bhd to manage the Second Penang Bridge and collect
toll from motorists, the Edge Financial Daily reported on
Friday, citing a local news website.
(Reporting by Soo Ai Peng; Editing by Louise Heavens)