The FTSE Bursa Malaysia KLCI (FBM KLCI) will likely see a pullback towards the lower range of 1,580-1,600 level next week on overbought correction.

The index achieved an all-time high of 1,609.33 on April 3.

Dr Nazri Khan, vice president, head of retail research of Affin Investment Bank, said the equities were expected to see a mild negative turn following a surprising absence of the US stimulus and renewed concern over the European financial crisis.

"We also expect the bullish sentiment to take a pause after the US Federal Reserve meeting indicated reduced prospects for more quantitative easing," he said today.

He said any pullback of the FBM KLCI was expected to be shallow, of between 4 and 6 per cent range, ruling out a 10-20 per cent correction.

Nazri said there was a tendency for stocks to weaken in early April, the month which is normally ends the six-month period that has historically been the strongest half of the year.

"April through September is typically the worst six-month stretch for stocks. We therefore are not surprised to see a short-term seasonal downturn in the near term," he said.

For the week just-ended, the market ended on a strong note with the FBM KLCI rallying to close at 1,596.33, after recorded the new all-time high of 1,609.33, reflecting the best quarter performance in Asian markets.

On a Friday-to-Friday basis, the benchmark FTSE Bursa Malaysia KLCI advanced 2.54 points to 1,598.87 from 1,596.33 last Friday.

The Finance Index surged 57.95 points to 14,379.6 from 14,321.65 last Friday. The Industrial Index went down 11.53 points to 2,872.43 from 2,883.96 last week

The Plantation Index increased 32.34 points to 8,773.76 from 8,741.42 last Friday. The FBM Emas Index rose 23.89 points to 10,963.61 from 10,939.63 previously.

The FBM Ace Index declined 49.24 points to 4,534.6 from 4,583.84 last Friday. The FBM Mid 70 Index advanced 26.93 points to 12,052.97 from 12,026.04 last Friday.

Total weekly volume decreased to 5.41 billion shares worth RM6.23 billion from 7.746 billion units worth RM7.784 billion last week.

The main market turnover declined to 3.63 billion shares worth RM5.86 billion from 4.131 billion shares worth RM7.281 billion last week.

Volume on the ACE market decreased to 1.89 billion valued at RM241.61 million from 3.056 billion units valued at RM463.499 million last week.

Warrants rose to 863.13 million shares worth RM115.35 million from 289.246 million shares worth RM31.108 million last week. -- Bernama