Bursa Malaysia is expected to trend higher next week along with other regional markets, boosted by positive news from the US and Europe.

Dealers said buying interest for assets in the emerging markets including Malaysia on renewed belief among investors that the US Federal Reserve would stand ready to support financial assets would lift up the market.

Dr Nazri Khan, Affin Investment Bank's Head of Retail Research, said: "We view the dovish statement from the US Federal Reserve (that interest rates would remain exceptionally low until at least late 2014) was a positive surprise for investors.

"We expect it would open the possibility of huge asset purchases to boost the global economy," he said.

He said the new resistance level for FBM KLCI would be 1,560 if the market could break the current resistance level of 1,530.

"Going forward, we believe the local equity market will maintain strong risk appetite, with commodities and emerging market currencies seeing strong demand," Nazri said.

On the local front, Bank Negara Malaysia will announce the outcome of its monetary policy meeting on Tuesday, probably a cut in the overnight policy rate to boost economic activity across the board.

An analyst said the local market would continue to be influenced by external events significantly despite local fundamentals remaining strong and speculative play ahead of the 13th general election.

He said interest in construction counters and government linked companies might heighten with MRT Corporation announcing contracts for the My Rapid Transit project.

IJM and Ahmad Zaki were the early winners with contracts totalling RM1.7 billion, and more contracts were expected to be given out going forward with some media putting the total figure at about RM15 billion.

This week, the start of Year of the Dragon saw mild trading as most investors had not returned from their Chinese New Year holiday.

Lack of support kept the market easier on Wednesday amid concerns over the Euro debt crisis but bargain hunting prompted a rebound the following day.

On Friday, the market eased a bit as investors were reluctant to take bigger exposures ahead of the weekend amid uncertainty in Europe.

On a weekly basis, the FBM KLCI declined 1.76 points to 1,520.90.

The Finance Index eased 52.5 points to 13,420.77 but the Plantation Index surged 163.61 points to 8,750.52 and the Industrial Index advanced 19.45 points to 2,791.29.

The FBM Emas Index jumped 51.54 points to 10,578.33, the FBM Mid 70 Index added 256.21 points to 12,149.36 and the FBM ACE Index perked up 128.91 points to 4,496.64.

The total weekly volume decreased to 5.58 billion shares worth RM5.08 billion from 7.96 billion shares worth RM7.86 billion last week.

The Main Market turnover decreased to 3.33 billion shares valued at RM4.73 billion from 4.94 billion shares worth RM7.38 billion previously.

Warrants slipped to 1.28 billion units worth RM220.38 million from 1.43 billion units worth RM227.49 million.

Volume on the ACE Market fell to 970.41 million shares valued at RM135.55 million from 1.57 billion shares worth RM243.55 million. -- Bernama