The FBM KLCI will likely be firmer next week based on better market sentiment in regional markets, dealers said.

Affin Bank Vice-President and Head of Retail Research Dr Nazri Khan said the FBM KLCI's underlying trend would remain firm in the near-term with the next target of 1,660 points, to be largely driven by large-capitalised and quality defensive stocks.

He said equity markets in Japan, Shanghai and United States have improved the last three months on the back of improving US economic data.

"The FBM KLCI's underlying trend remains upbeat ahead of Budget 2013 and positive corporate results, as well as, the better-than-expected growth in Malaysia's second quarter gross domestic product," he said.

Dr Nazri said the government's fiscal initiatives also provided support to the economy.

"Malaysia's bourse remained the most defensive exchange with one of the highest dividend in the world. This attracted fund managers into the Malaysian bourse," Dr Nazri said, adding that property, finance and consumer stocks would lead the market forward.

During the week, the FBM KLCI surged to an all-time-high over and above the 1,650-level, in tandem with gains in regional markets bolstered by expectations of stimulus measures by policy makers in major economies.

On Friday, the FBM KLCI slipped below 1,650 points on profit-taking as investors locked in their profits ahead of the Hari Raya holidays.

The market will be closed on Monday and Tuesday for the festive celebration.

On a Friday-to-Friday basis, the benchmark FBM KLCI rose 4.43 points to 1,649.79 from 1,645.36 last Friday.

The Finance index increased 29.06 points to 14,804.82, the Plantation index, however, declined 106.38 points to 8,641.49, the Industrial index improved 1.52 points to 2,877.32, the FBM Emas index rose 19.95 points to 11,282.31.

The FBM70 Index decreased 39 points to 12,402.88, the FBMT 100 Index increased 17.32 points to 11,101.12 while the FBM Ace Index surged 71.65 points to 4,541.

The weekly volume increased to 6.155 billion shares, worth RM6.715 billion, from 5.837 billion shares, worth RM8.217 billion, registered last week.

Main market volume decreased to 3.477 billion shares, valued at RM6.345 billion, from 4.058 billion shares, valued at RM7.942 billion, recorded last week.

Turnover on the Ace market improved to 2.080 billion units, worth RM317.360 million, from 1.361 billion units, worth RM225.272 million, last week.

Warrants turnover increased to 556.279 million units, valued at RM46.026 million, from last week's 392.519 million units valued at RM45.789 million. -- BERNAMA