Malaysian shares set to trade sideways

MALAYSIAN shares are expected to trade sideways with an upside bias today after Wall Street's gains yesterday."I expect rangebound trading today. Investors will be rather cautious because the US government is expected to release tonight the results of the bank stress tests," said an institutional dealer from a bank-backed brokerage."But any profit-taking is likely to be mild because local funds are still bulding up their positions. I expect the current rally to continue until local funds have a larger position in the market," Malaysian banks will be closely watched after a news website said the government may lift a 30 per cent shareholding cap in commercial banks. - Reuters