Malaysian shares seen up; politics, planters eyed

KUALA LUMPUR, Aug 7 (Reuters) - Malaysian shares are
expected to trade in a narrow range with an upward bias on
Thursday after U.S. stocks ended higher but political
uncertainties and weak commodities prices could cap gains.

Sentiment on palm oil stocks, which account for nearly 20
percent of the benchmark index in terms of market value, is
expected to remain weak after steep losses over the past two
days.

"There will be a bit more downside for plantation stocks
today because we think palm oil prices are going no where after
soybean futures closed lower overnight," said a technical
analyst from a local brokerage.

U.S. soybean futures on the Chicago Board of Trade dived to
a four-month low on Wednesday on follow-through technical
weakness amid favorable weather for the soybean crop as it
enters its critical pod-filling phase. [ID:nN06504222]

Malaysia's leading opposition leader Anwar Ibrahim is
expected to be charged with sodomy later on
Thursday.[ID:nKLR266152]

The former deputy premier, who had hoped to win a
parliamentary seat at a by-election on Aug. 26, said the sodomy
allegations were a political consipiracy aimed at derailing his
comeback.

Among the stocks to watch, top lender Maybank (MBBM.KL) may
be in focus after media reports that Indonesia's market
regulator may ease rules which would require the Malaysian bank
to cut its stake in Bank Internasional Indonesia (BNII.JK) in
two years following a takeover.

Bank Negara Malaysia, the central bank, had revoked last
week its approval of Maybank's acquisition of a controlling
stake in BII, saying the rules could lead to material losses
for Maybank.

Here are news stories and factors that may affect the
Malaysian stock market on Thursday. -------------------MARKET
SNAPSHOT @ 00:01 GMT ---------------

INSTRUMENT LAST PCT CHG NET CHG

S&P 500 .SPX 1,289.19 0.34% 4.310

USD/JPY JPY= 109.46 -0.16% -0.160

10-YR US TSY YLD US10YT=RR 4.063 -- 0.005

SPOT GOLD XAU= $880.85 0.26% 2.250

US CRUDE CLc1 $118.97 0.33% 0.400

DOW JONES .DJI 11656.07 0.35% 40.30

ASIA ADRS .BKAS 142.56 0.83% 1.17
-------------------------------------------------------------
> Indonesia regulator may ease BII rule-report [ID:nKLR233345]
> BankThai says has sold its CDOs for $77 mln [ID:nBKK110804]
> ASEAN energy ministers to approve oil stockpile
plan[nSP322660] > Malaysia's Anwar to be prosecuted for sodomy
[ID:nKLR266152] > Palm oil rebounds on short-covering, exports
eyed [nJAK143660] > SEA Stocks higher as oil slide eases
inflation worries [.SO] > US STOCKS-Market rises on Cisco
outlook, drop in oil [.N] > Oil hits three-month low on
U.S. crude bind [O/R] > US dollar vaults to
7-month high vs yen, risk appetite up[USD/] > Bonds slip as
stock market gains lure investors [US/] > Gold ticks
up on bargain hunting after three-day fall [GOL/]
(Reporting by Soo Ai Peng; Editing by David Chance)