The FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) is likely to challenge the 1,300-point level next week with investors looking for new catalysts to propel the market indices, dealers said.
The benchmark index had posted the first high of this year at 1,308.36 on Jan 21.
TA Securities' senior technical analyst Stephen Soo said the market currently lacked foreign participation.
Soo said the soon-to-be-unveiled new economic model may provide a strong catalyst for the local stock market.
During the week, the market started of on high note, bolstered by announcement of the country's better-than-expected fourth-quarter economic growth of 4.5 per cent last year.
The local market also took its cue from gains on Wall Street and regional bourses as the improved economic outlook in the US economy boosted sentiment.
However, the market drifted lower on Wednesday and Thursday ahead of Bank Negara Malaysia''s monetary policy committee meeting on Thursday evening.
The market ended sharply higher on Friday with the FBM KLCI surging 15.69 points to 1,299.78, its highest level since Jan 25, 2010.
Gains in banking stocks, led by Maybank, propelled the market indices.
On a weekly basis, the FBM KLCI advanced 29 points to 1,299.78 from 1,270.78 last Friday while the finance index added 405.71 points to 11,537.66 from 11,131.95.
The Plantation Index increased 78.42 points to 6,396.06 from 6,317.64 last Friday and the Industrial Index went up 26.76 points to 2,604.03 from 2,577.27.
The FBM Emas Index was 177.08 points higher at 8,737.28 from 8,560.2 last Friday and the FBM Top 100 rose 178.66 points to 8,506.23 from 8,327.57 but the FBM Ace Index declined 46.05 points to 4,299.04 from 4,345.09 previously.
The week's turnover increased to 4.42 billion shares valued at RM7.636 billion from 2.78 billion shares valued at RM4.98 billion last week.
Volume on the Main Market rose to 3.907 billion shares worth RM7.537 billion from 2.44 billion shares worth RM4.92 billion previously.
Call warrants went up to 149.077 million units valued at RM28.192 million from 130.59 million units valued at RM18.83 million last week.
The ACE Market volume was higher at 263.504 million shares worth RM50.447 million compared to 175.7 million shares worth RM39.16 million previously. -- Bernama