Malaysian stocks seen rebounding, politics weigh

KUALA LUMPUR, July 7 (Reuters) - Malaysian shares are
expected to rebound on Monday, after ending at a 16-month low
on Friday, but any rise would be short-lived as investors fret
about lingering political uncertainties, analysts said.

Investors are likely to pick up plantation and
energy-related stocks such as IOI Corp (IOIB.KL: Quote, Profile, Research) and
SapuraCrest Petroleum (SCRS.KL: Quote, Profile, Research) in expectation of firm prices
of crude palm oil and crude oil, the research chief of a local
bank said.

The broader market could see a brief bounce back before
heading lower, he added.

"Overall, sentiment will remain negative," he said. "The
domestic political situation is still clouding the outlook and
the global economy looks like it is heading towards a
downturn."

TA Securities research head Kaladher Govindan pegged
support for the main share index at 1,120 points and resistance
at 1,141.

The benchmark Kuala Lumpur Composite Index .KLSE fell 1.7
percent to 1,134.14 points on Friday. It lost 4.7 percent last
week and is down 21 percent so far this year.

The July futures index KLIN8 put the index at 1,110.0
points.

Public bickering between Deputy Prime Minister Najib Razak
and opposition leader Anwar Ibrahim has unnerved investors.

Anwar faces a sodomy allegation that has rocked the nation
while a missing private detective made, and then abruptly
retracted, allegations that Najib had sexual relations with a
murdered Mongolian woman.

The U.S. market was shut on Friday for the Independence Day
holiday.

Here are news stories and factors that may affect the
Malaysian stock market on Monday.
------------------------MARKET SNAPSHOT @ 00:03
GMT--------------

INSTRUMENT LAST PCT CHG NET
CHG S&P 500 .SPX 1,262.90 0.11%
1.380 USD/JPY <JPY=> 106.70 -0.07%
-0.080 10-YR US TSY YLD <US10YT=RR> 3.932 --
-0.054 SPOT GOLD <XAU=> $930.45 -0.20%
-1.850 US CRUDE CLc1 $144.20 -0.75%

-1.090 DOW JONES .DJI 11288.54 0.65%

73.03 ASIA ADRS .BKAS 145.47 0.57%

0.82
----------------------------------------------------------------
-> Malaysia Petronas Gas plant resumes operation
[ID:nKLR91995] > Malaysia's Khazanah to sell Pharmaniaga stake
[ID:nKLR89830] > Malaysia's Gamuda may be taken private-paper
[ID:nKLR74367] > Malaysia says regrets U.S. remarks on Anwar

[ID:nKLR76865] > Malaysia Petronas Gas cuts supplies after
outage[ID:nKLR251129] > Palm oil falls on weak China
soyoil,mood bullish[ID:nKLR201437] > U.S. stocks' escape from
bear up to oil, GE [.N] > Oil falls below $144,
Iran responds to nuclear offer [O/R] > FOREX-Euro hits 1-wk
low vs dlr, punctured by Trichet [USD/] > TREASURIES-Short
maturity debt gains on weak jobs [US/] > Gold steady as
inflation fears balance dollars [GOL/] > SE Asian
Stocks-Malaysian falls to 16-mth low [.SO] >
Malaysia asks Interpol help to find missing
detective[nSP81480]
(Reporting by Liau Y-Sing; Editing by Clarence Fernandez)