Malaysian shares seen opening flat

KUALA LUMPUR, March 4 (Reuters) - Malaysian shares are
expected to open flat on Wednesday, with foreign investors
taking a pause after two days of heavy selling triggered partly
by U.S. financial woes.

U.S. stocks fell on Tuesday due to persistent uncertainty
about the amount of money needed to shore up the financial
system. The S&P index .SPX ended below 700 points for the
first time since October 1996 and the Dow Jones industrial
average .DJI fell 0.55 percent.

"Buyers are still on the downside but I don't see much of
follow-through (from the Dow Jones) and the market will be
resilient," said a local dealer.

Malaysia's benchmark stock index .KLSE ended 0.89 percent
lower at 868.74 points on Tuesday.

The market has already suffered over the last two days in
the aftermath of rights issues by top lender Maybank (MBBM.KL)
and Malaysian mobile telephone company TM International
TMIT.KL, the dealer said.

"I won't be surprised if eventually the Dow Jones keeps
declining ours will follow suit, but at this stage I think the
pace is slower," said the dealer.

Here are the factors that may affect Malaysian stocks on
Wednesday. ------------------ MARKET SNAPSHOT @ 2338 GMT
----------------

INSTRUMENT LAST PCT CHG NET CHG

S&P 500 .SPX 696.33 -0.64% -4.490

USD/JPY JPY= 98.44 0.3% 0.290

10-YR US TSY YLD US10YT=RR 2.888 -- 0.002

SPOT GOLD XAU= $913.75 -0.21% -1.950

US CRUDE CLc1 $41.49 -0.38% -0.160

DOW JONES .DJI 6,726.02 -0.55% -37.27

ASIA ADRS .BKAS 75.84 1.21% 0.91
------------------------------------------------------------- >
Malaysia's KSC likes dividend stocks, not Tenaga [ID:nKLR18440]
> Ringgit fall in line with global trend-c.bank
[ID:nKLA008177] > Malaysia Jan export fall seen worst since
1981 [ID:nKLR232641] > Popular sharia contract days' seen
numbered [ID:nKLR395520] > SEA Stocks-Financials weigh on
S'pore, Jakarta rebounds [.SO] > US STOCKS-S&P below 700 as
banks' future still in question [.N] > VEGOILS-Palm weaker but
weaker ringgit supports [POI/] > Oil rises nearly 4 pct
on OPEC, stock bounce [O/R] > TREASURIES-Bonds down
on supply; weaker stocks dim losses [US/] > FOREX-Dollar gains,
bolstered by US bank woes [USD/] > PRECIOUS-Gold at
3-wk low, liquidation gathers steam [GOL/]
(Reporting by Varsha Tickoo; Editing by Dhara Ranasinghe)