Stocks on Bursa Malaysia are expected to rally in the second quarter of 2011 despite global uncertainty stemming from political turmoils in the Middle East and North Africa as well as Japan's devastating earthquake and tsunami.

CIMB Investment Bank Bhd's senior analyst Nigel Foo Chek Keng said the local market had its own cycle and was not affected by the events.

After peaking in January and a period of consolidation thereafter, the bourse would likely bottom out by end of this month, he said.

'The market discounts everything six months to one year ahead.

'At the peak of the economy, the market starts to grow and at the worse of economy, the market starts to rally,' he told reporters after delivering a talk on 'Market Outlook for Second Quarter 2011 and Beyond' at the Bursa Malaysia's Market Chat 2010/11 in Kuala Lumpur today.

Going forward, Foo said buying interest would continue to focus on rubber glove, timber and oil and gas stocks.

He said this year's FTSE Bursa Malaysia KLCI target was 1,700 points.

Market Chat 2010/11 is part of a retail investment programme by Bursa Malaysia to encourage greater retail participation in the capital market. -- Bernama