Malaysia stocks seen in range, await budget

Thu Aug 28, 2008 8:10pm EDT

[-] Text [+]

 KUALA LUMPUR, Aug 29 (Reuters) - Malaysian stocks are
likely to drift in a tight range on Friday ahead of the release
of 2009 budget and second-quarter gross domestic product data,
traders said.

 The government is due to announce the budget at 4 p.m.
(0800 GMT), with markets watching closely for any signs of
budget overshoot in 2008 and on spending plans for 2009 as the
government is under pressure from a resurgent opposition.
[ID:nKLR244763]

 The budget comes a day Anwar, a former deputy premier and
now opposition leader, was sworn in as a lawmaker. His return
may curtail the government's ability to form policy as well as
step up confrontations between the government and the
opposition. [ID:nKLR72907]

 On Thursday, Malaysia's benchmark composite index .KLSE
rose 0.3 percent to 1,070.46.

 The index has fallen about 26 percent so far this year as
foreign investors shunned Malaysian equities after revitalised
opposition parties inflicted heavy losses on the ruling
coalition in the March general election.

 "The market is likely to hover around the current levels
and volumes will stay thin pending the budget," said a dealer
at a local brokerage house. "Nobody wants to do anything until
a clearer picture emerges."
  --------------MARKET SNAPSHOT @ 23:16 GMT -------------
 INSTRUMENT                         LAST    PCT CHG      NET
CHG
 S&P 500           .SPX       1,300.68     1.48%      1
9.020
 USD/JPY           JPY=         109.50     0.07%       
0.080
 10-YR US TSY YLD US10YT=RR      3.789        --       
0.000
 SPOT GOLD       XAU=          $831.80    -0.17%      
-1.450
 US CRUDE        CLc1          $116.37     0.67%       
0.780
 DOW JONES       .DJI         11715.18     1.85%      
212.67
 ASIA ADRS       .BKAS          137.95     0.31%        
0.43
 --------------------------------------------------------------
> Anwar rejoins parliament, clashes with govt  [ID:nKLR72907] >
Malaysia set for populist budget             [ID:nKLR244763] >
M'sian palm futures end lower                [ID:nJAK322316] >
Malaysia's Genting Q2 profit down 46 pct     [ID:nKL69107] >
SEA Stocks-Mostly higher, Singapore drops to 21-mth low [.SO] >
US STOCKS-Strong U.S. data, weak oil sparks Wall St rally [.N]
> Oil falls as Us. IEA ready emergency stockpiles         [O/R]
> FOREX-U.S. dollar edges up, cheered by growth data     [USD/]
> TREASURIES-Bonds see minor setback from jump in Q2 GDP  [US/]
> Gold ends up but off highs as dollar turns higher     
[GOL/]
  (Reporting by Jalil Hamid; Editing by Anshuman Daga)