KUALA LUMPUR: Sentiment on Bursa Malaysia is expected to remain firm, with interest on lower liners and selected blue chips, on May 11, underpinned by the strong overnight close on Wall Street.

Trading interest has spread to penny stocks and some counters which do not have any fresh corporate news.

Perhaps, investors should review their portfolio and clean out the underperformers or losers. Investors must be also disciplined to sell those which had not performed in months or even years.

Companies which have poor financial performance, weak cashflow and not performed in months or years should be cleared out.

Investors can take comfort from the recent trade data when Malaysia’s March exports fell 15.6% from a year, which was less than in February’s 15.9%.

Meanwhile, Standard Chartered Group Global Research said in a report that Brent crude prices broke above US$55 per barrel (congestion) and US$56.60 (cluster of highs in April) resistance this week, leaving the basing pattern to unfold.

“The rounding base continues to unfold, and clearing the US$55/bbl to US$56.60 area gives the basing pattern much needed confirmation, and targets a move towards US$70-US$71 over the coming months (simple extension pattern).

“The immediate objective is a move to the 23.6% retracement of the drop from the US$147.50 high of July 2008 which comes in at US$62.47.

“Falling trendline support (former resistance) at US$55.30/bbl is expected to prove difficult to break on dips. If this level does give way though then the July contract high of 24 April at US$53.06 will come under pressure, ahead of the USD 49.45/bbl 21 April low in the contract.

“Daily momentum indicators are bullish and support the upside with resistance at US$60.43 (January 2006 high in the July contract) and then US$63.67 (Nov 28 high) worth watching,” it added.

On May 11, Axiata’s renounceable rights issue of 4.69 billion new ordinary shares at RM1.12 per rights share on the basis of five rights shares for every four held, will be listed.

TA Enterprise could see some trading interest following the latest development in its corporate exercise which includes the listing of TA Global.

TAE had proposed to distribute up to 950.52 million shares and all the ICPS held by TAE (amounting to 1,215,363,632 ICPS) via dividend-in-specie. The proposed dividend-in-specie will involve a reduction of TAE’s retained profits only.

In its earlier announcement in September last year, TAE proposed to distribute up to 950.52 million shares and all the ICPS held by TAE which will involve a reduction of TAE’s share capital and share premium.

In KL Kepong, its unit is teaming up with Indonesia’s PT Perkebunan Nusantara II to manage the latter’s plantations in Distrik Rayon Tengah, Sumatera. KL Kepong’s investment will include at least replanting 40% of its plantations and rebuilding two new palm oil mills. The cost is about US$50 million.

TM’s shareholders approved the company’s RM3.5 billion capital repayment plan and RM382-million dividend payout. The shareholders will receive RM3.88 billion in June when the two exercises are completed.

Moody's Investor Services had downgraded TM's local currency issuer rating from A2 to A3.