Politics, weak palm prices to hit Malaysian stocks

KUALA LUMPUR, Aug 18 (Reuters) - Malaysian stocks are
expected to drift lower on Monday, hit by falling crude palm
oil prices and domestic political uncertainties.

Planters IOI Corp (IOIB.KL) and Sime Darby (SIME.KL) are
likely to slip after palm oil futures fell to an 11-1/2-month
low on Friday as sagging crude knocked down vegetable oil
markets.

Shares of flag carrier Malaysian Airline System (MASM.KL)
and MISC (MISC.KL), the world's largest carrier of liquefied
natural gas, are also in focus ahead of the release of the
firms' quarterly earnings on Monday.

The broader market was likely to extend Friday's decline.

"Commodities prices are coming off and that should impact
the key index a bit," said a dealer with a local bank.

"The by-election is not over so people are still
sidelined," she said, referring to opposition figure Anwar
Ibrahim's bid for a parliamentary seat in a northern state,
which he hopes will pave the way for the opposition to seize
power.

The by-election will take place on Aug. 26.

The stock market's benchmark index .KLSE slid 1.3 percent
to 1,095.05 points on Friday, in line with a fall in most other
regional markets.

The research chief of a local bank said the index was
likely to ease a further 10 points on Monday.

The Dow and S&P 500 rose on Friday, as sinking commodity
prices raised hopes of a consumer spending recovery, helping
push shares of retailers higher.

The Dow Jones industrial average .DJI rose 0.38 percent
to 11,659.90. The Standard & Poor's 500 Index .SPX gained
0.41 percent to 1,298.20. The Nasdaq Composite Index .IXIC
slipped 0.05 percent to 2,452.52.

Here are news stories and factors that may affect the
Malaysian stock market on Monday. --------------------MARKET
SNAPSHOT @ 23:53 GMT-----------------

INSTRUMENT LAST PCT CHG NET
CHG S&P 500 .SPX 1,298.20 0.41%
5.270 USD/JPY JPY= 110.32 -0.17%
-0.190 10-YR US TSY YLD US10YT=RR 3.844 --
-0.004 SPOT GOLD XAU= $790.30 0.61%

4.800 US CRUDE CLc1 $114.10 0.29%

0.330 DOW JONES .DJI 11659.90 0.38%

43.97 ASIA ADRS .BKAS 137.18 -0.72%

-1.00
----------------------------------------------------------------
-> Palm oil sinks to 11-½ mth lows on defaults
[ID:nKLR14924] > Malaysia's Cagamas sells 2 bln rgt Islamic
bonds [ID:nKLR88830] > Malaysia Anwar bids for seat, battle
lines drawn[ID:nKLR184293] > SE Asian Stocks-Lower as oil
slips, Vietnam at mth-high [.SO] > US STOCKS-Dow, S&P 500 rise
as lower oil lifts retailers [.N] > Oil falls below $114 on
global demand worries [O/R] > FOREX-Dollar posts 5th
weekly gain versus euro [USD/] > TREASURIES-Yields at
1-mo low as inflation fears recede [US/] > Gold falls below
$800 for first time since Dec [GOL/]
(Reporting by Liau Y-Sing; Editing by Louise Heavens)