KLCI Tipped To Open Higher; 1600 Cap Eyed

The KLCI is tipped to open higher, helped by strong U.S. stocks Thursday after robust ADP jobs data from the U.S. and encouraging words from ECB Trichet. A local dealer says "the sentiment across the region is going to be positive. On top of positive news coming from overseas, the (Malaysian) central bank keeping the interest rates unchanged will also help the market locally." He tips immediate resistance at the psychological 1600 level. Among stocks in focus, Cahya Mata Sarawak (2852.KU) may rise on news it's in talks with Australia's OM Holdings Ltd. (OMH.AU) to build a $450 million smelting plant in Malaysia, while YTL Power International (6742.KU) may rise on news it will sell a stake worth $224 million in an Indonesian power-generation unit. The KLCI ends down 0.1% at 1590.24 Thursday.