Malaysia Hot Stocks-Market to extend gains, planters eyed

KUALA LUMPUR, Nov 26 (Reuters) - Malaysian stocks are likely to rise on Monday on the back of a recovery in U.S. stocks and after palm oil prices rose to a fresh record, though gains should be capped by global concerns, an analyst and a dealer said.

Palm planters such as IOI Corp Bhd (IOIB.KL: Quote, Profile, Research, Stock Buzz), Kuala Lumpur Kepong Bhd (KLKK.KL: Quote, Profile, Research, Stock Buzz) and Asiatic Development Bhd (ASIA.KL: Quote, Profile, Research, Stock Buzz) could gain after palm oil prices surged to a new record on Friday, they said.

"It could be a technical rebound but sustainability wil be in question because of the external volatilities," said Ng Jun Sheng, a senior analyst with SBB Securities. "Concerns remain the same: crude oil and the dollar."

On Friday, the Kuala Lumpur Composite Index .KLSE advanced 0.7 percent to 1,353.55 points led by casino operator Genting Bhd (GENT.KL: Quote, Profile, Research, Stock Buzz), which had announced plans to pay a special dividend.

The November contract KLIX7 put the index at 1,356.5 and December KLIZ7 at 1,356.

"The market will bounce but it will be rangebound trading," added a dealer with a foreign brokerage. "I think palm oil producers and companies like UEM World and YTL will be active."

A consortium consisting of state-controlled builder UEM World (UEMW.KL: Quote, Profile, Research, Stock Buzz), a member of the YTL group (YTLS.KL: Quote, Profile, Research, Stock Buzz) and parties linked to the royal family of central Pahang state have bid for a 4 billion ringgit project to transfer water from Pahang to Selangor state, The Edge weekly reported, quoting unnamed sources.

The analyst pegged support for the main index at 1,345 points and resistance at 1,380 points.

U.S. stocks rebounded on Friday in an abbreviated session as the start of holiday shopping lifted retail stocks, while progress in a plan to relieve the credit market's strain aided bank shares.

The Dow Jones industrial average .DJI was up 1.42 percent at 12,980.88 and Standard & Poor's 500 Index .SPX rose 1.69 percent to 1,440.70. The Nasdaq Composite Index .IXIC gained 1.34 percent to 2,596.60.