The FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) is likely to continue to trend higher next week prompted by investors' confidence in the recent 2013 Budget announcement and an improved outlook on global economy.

Affin Investment Bank Bhd Vice-President and Head of Retail Research, Dr Nazri Khan, said FBMKLCI is likely to kick start Christmas rally on a traditionally bullish October-December period with 1,700 level as the ultimate year-end-target.

"We believe the key index should trend higher on regional strength and local funds accumulation ahead of the general election and post 2013 Budget with focus on potential corporate tax cut to boost the country's competitiveness," he said.

He added the positive external backdrops also should give support to the local bourse following better improvement in the US economy and expectation of more stimulus packages from Bank Of England and People Bank Of China.

Back home, Nazri said they expect among the important catalysts to move the market would be the Mass Rapid Transit Corp Sdn Bhd's new award of RM732 million three station packages.

He said the government's move to slash crude palm oil export tax to match Indonesia, with a significant cut from 23 per cent to 10 per cent, also will benefit counters related to this industry.

During the week just ended, the local bourse showed better movement as the barometer index touched a new high on Thursday, closing at 1,661.47.

The key index continued its uptrend on Friday morning, touching an intra-day high of 1,668.32 at 9.58 am, but failed to maintain the momentum and ended slightly easier at 1,660.23.

On Friday-to-Friday basis, the FBM KLCI finished 23.57 points higher at 1,660.23 compared with 1,636.66 the previous Friday.

The Finance Index surged 141.71 points to 14,680.76 from 14,539.05 and the Industrial Index increased 30.95 points to 2,834.57 from 2,803.62, while the Plantation Index slipped 106.11 points to 8,171.97 from 8,278.08.

The FBM Emas Index gained 154.12 points to 11,260.68 from 11,106.56 last Friday and the FBM Mid 70 Index rose 172.56 points to 12,099.56 from 11,927.

The FBM ACE Index decreased 15.0 points to 4,289.68 from 4,304.68 previously.

The weekly volume in turnover eased to 4.430 billion shares worth RM7.047 from 4.431 billion shares worth RM7.457 billion the previous week.

The Main Market volume increased to 3.379 billion shares worth RM6.894 billion from 3.315 billion shares worth RM7.299 billion previously.

Volume on the ACE market decreased to 718.767 million shares worth RM123.183 million from 802.925 million shares worth RM131.453 million.

Warrants turnover increased to 308.394 million units worth RM20.833 million from 286.354 million units worth RM21.496 million prevously.--BERNAMA