The FTSE Bursa Malaysia KLCI (FBM KLCI) is expected to stage a rally next week on optimism the current government will retain power post-general election, positive reversal in commodity prices, firm regional stock sentiment and strong performance of the ringgit following the influx of foreign funds, a dealer said.

Affin Investment Bank vice-president and head of retail research Dr Nazri Khan said as of last week, Malaysia's equity market attracted RM13.1 billion of foreign funds in the open market in less than four months compared with RM13.7 billion for the whole of 2012.

"The solid funds inflow, especially after the polling dates were announced and mostly parked in government linked companies (GLCs), indicates investors confidence in the likely win of the incumbent government," he told Bernama.

He said there could be another strong equity push in the final run-up towards the May 5 polling day.

"On the FBM KLCI, buying momentum is likely to push the index above its recent intraday record high of 1,718, and target the immediate resistance of 1,750," he said.

Nazri said the local index was also likely to get support from the firm global stock performance fuelled by favourable US' employment data and UK's upbeat economic data which showed the country has avoided a triple-dip recession.

He said recent concerns over slowing growth had been offset to some degree by expectations that the world's central banks would maintain accommodative policy stance and governments to launch more pro-growth policies.

Meanwhile, he said the ringgit is expected to advance for the sixth week, the longest rally in more than three years, on speculation that monetary easing in Japan and Europe will boost more demand for emerging-market assets.

"Given the positive regional sentiment, cautiously bullish election mood and expectations of a victory for the current government in the general election, investors are opting for GLC stocks that are well positioned for the new government mandated business mode," he added.

On a Friday-to-Friday basis, the benchmark FBM KLCI ended 12.75 points higher to an all-time high of 1,711.29.

The market barometer also hit a record intraday high of 1718.08 on the last trading day.

The Finance Index soared 81.78 points to 15,981.77.

The Plantation Index fell 6.72 points to 8,107.82 and the Industrial Index eased 59.34 points to 2,839.30.

The FBM Emas Index gained 51.81 points to 11,678.82, FBMT100 increased 61.35 points to 11,516.60.

FBM Ace Index dropped 79.87 points to 3,970.81 and the FBM Mid 70 decreased 34 points to 12,883.64.

Weekly turnover declined to 3.79 billion shares worth RM8.22 billion from last week's 4.18 billion shares worth RM8.26 billion.

Main market volume fell to 3.06 billion shares valued at RM8.09 billion from 3.47 billion shares valued at RM8.16 billion last week.

The ACE market volume firmed to 571.28 million shares worth RM102.80 million from 542.592 million shares worth RM78.377 million in the previous week.

Warrants decreased to 151.92 million units valued at RM18.72 million against last week's 160.79 million shares worth RM14.687 million.-- Bernama