Focus on Stocks in Iskandar Malaysia

Companies related to the Iskandar Malaysia project would continue to attract interest include Tebrau Teguh, UEM Land, MRCB and Tradewinds Malaysia.

The proposal to look into a third bridge on the eastern side of Johor, to link Malaysia and Singapore, would also stir interest in these companies. According to Prime Minister Datuk Seri Najib Razak, it was Malaysia which initiated the project.

The two countries will also look into two iconic projects in Iskandar Malaysia which would include a wellness centre and a mixed development township.

As for corporate results, this would be the last week for the January-March quaday of losses in the US could restrain investors' appetite on concerns the looming budget deficit could see its ratings lowered, in tandem with UK, during the week of May 25-29.

Standard Chartered Group Global Research said in a note to clients that while US consumer spending has bottomed out, the return to growth will be slow.

"Headwinds include falling employment, falling house prices and tight credit. Lower gas prices helped consumers over the winter but prices are now rising. Weak real income growth and rising savings will keep consumer spending slow," it said.

On the home front, the watch list this week would include Bank Negara's monetary policy meeting on May 26 and the release of the first quarter GDP data, which would show a contraction, on May 27.

Investors would want to get the first hand view from the central bank about the outlook for the second quarter and the second half.

At Bursa Malaysia, there could be some consolidation after the 9.7 points gain, underpinned by fund buying interest in heavyweights including Tenaga, Genting, IOI Corp, Boustead and MISC.rter with Proton, MAS, AirAsia scheduled to release their results.