Malaysian shares are expected to be higher next week buoyed by the positive market sentiment.
Dealers said the market barometer was likely to test the 1,340-point level next week with key bluechips leading the rise.
A dealer said the global economy, which was on a recovery mode, would continuously provide a positive impact to the local market.
He said the growing confidence in the domestic economy would augur well for the stock trade.
For just-ended week, the local stock market surpassed the 1,300-point level, supported by the hike in the overnight policy rate (OPR), which triggered gains in bluechip banking stocks, and lifted the FBM KLCI into positive territory.
The FBM KLCI had touched a two-year high of 1,328.22 on Wednesday, led by gains in plantation stocks, with expectation of a brighter future for the palm oil industry.
The benchmark index had earlier breached its first high for the year on Jan 21, at 1,308.36 points.
After riding high, selling pressure seeped in on Friday and the market ended the week with a decline.
Prudential in a research report said most South East Asian markets rose in February, recovering some of the ground lost in the previous months, thanks to better-than-expected economic data and favourable corporate earnings results.
On the macroeconomic side, it said Malaysia and Thailand had emerged out of recession in the fourth quarter of 2009. Singapore, meanwhile, raised its growth estimate for this year as the global recovery gained traction.
On a week-on-week basis, the FBM KLCI advanced 11.42 points to 1,311.20 compared to last Friday''s 1,299.78 while the Finance Index added 126.71 points to 11,664.37 from 11,537.66. The Plantation Index increased 75.98 points to 6,472.04 from 6,396.06 last week and the Industrial Index went up 39.46 points to 2,643.49 from 2,604.03.
The FBM Emas Index was 68.45 points higher at 8,805.73 from 8,737.28 last Friday and the FBM Top 100 rose 71.09 points to 8,577.32 from 8,506.23. However, the FBM Ace Index declined 60.71 points to 4,238.33 from 4,299.04 previously.
The week's turnover declined to 4.402 billion shares worth RM8.014 billion from 4.42 billion shares valued at RM7.636 billion last week.
Volume on the Main Market slipped to 3.696 billion shares valued at RM7.816 billion from 3.907 billion shares worth RM7.537 billion previously.
Call warrants went up to 254.6 million units worth RM45.55 million from 149.077 million units valued at RM28.192 million last week.
The ACE Market volume was higher at 305.383 million shares valued at RM48.604 million from 263.504 million shares worth RM50.447 million previously. -- Bernama