KUALA LUMPUR: The market could consolidate further on May 22, but this would also hinge on the performance of Wall Street and external newsflow.

In the US, stocks fell overnight as investors, concerned about the US budget deficit, exited dollar-denominated assets across the board.

Investors’ sentiment was also impacted by Standard & Poor's Ratings Services move to revise its outlook on the UK to negative from stable as it expected the net general government debt burden could approach 100% of GDP.

Asian equities and European markets had retreated on May 21 following rising concerns that the US, due to its ballooning deficit and weakening recession could see it also suffer the same fate as the UK.

On the commodities front, crude palm oil futures for third month delivery tumbled RM103 to RM2,499 on fears the rally could not be sustained while light crude oil futures fell US$1.47 to US$60.57 on recession fears.

The market could see some profit-taking activities ahead of the weekend, especially since a strong run-up since late March.

The weaker CPO and crude oil futures could also see plantation stocks coming under profit taking.

Stocks in focus would include heavyweights Maybank, Telekom, YTL Corp, Litrak and WCT after reporting their earnings on May 21.

Maybank’s net profit in the third quarter ended March 31, 2009 fell 33.6% to RM503.28 million from RM758.6 million a year ago due to higher allowance for loan losses and impairment.

Telekom Malaysia posted net profit of RM27.73 million in the first quarter ended March 31, sharply lower than the RM519.7 million a year ago. The lower profit was partly due to foreign exchange translation losses of RM175 million versus forex translation gain of RM118 million a year ago.

YTL Corp bucked the trend, with net profit of RM484.36 million, up 140% compared with RM202.52 million a year ago. Revenue was also higher at RM1.98 billion compared with RM1.63 billion.

Litrak saw its net profit falling 33% to RM19.5 million from RM29.12 million a year ago while WCT’s earnings fell to RM39.22 million from RM55.58 million.

However, companies which secured contracts in Iskandar Malaysia could see some activity, including Loh & Loh Corp and Salcon while companies with land banks in the area would also see trading interest including Tebrau Teguh, MRCB and UEM Land.

Loh & Loh Corp secured a RM141.5 million project for the proposed construction and completion of infrastructure works for Medini Development, Iskandar Malaysia in Johor.

Salcon Engineering Bhd secured a RM94.31 million project from Medini Iskandar Malaysia Sdn Bhd for the proposed construction of infrastructure works in Iskandar Malaysia.