After registering a historical high of 1,670.16, the FTSE Bursa Malaysia KLCI (FBM KLCI) is expected to extend its rally next week on further improvements in the external environment as well as support from banking stocks.

Affin Investment Bank Bhd Vice-President and Head of Retail Research, Dr Nazri Khan, said the benchmark index was expected to trend higher in tandem with regional strength.

This will be further supported by an active flow of Chinese economic data and anticipation of more aggressive stimulus following the upcoming European Union Summit, he said.

"Following the positive weekly performance in the US and Europe as well as reversals seen in China and Japan, we expect the FBM KLCI to maintain positive momentum and possibly set fresh record next week," he said.

He said the Moody's reports maintaining Spain's investment grade credit rating as well as better-than-expected China's economy data for third quarter would be positive triggers for risk-taking sentiment.

Nazri said continued leadership and measure of support would come from the local finance sector, driven by the strength in Maybank, Public Bank, CIMB and Hong Leong Bank.

"Based on Fibonacci extension, we are pegging 1,680 and 1,700 as the most likely major targets for FBM KLCI near and medium term. Support, however, may come from accumulation near 1,660 and 1,650 levels, he said.

Apart from that, several important catalysts were likely to spice the market near term which included potential privatization from local airlines and insurance industry as well as potential third round of consolidation in the local banking stocks, Nazri said.

On the local front, Astro Malaysia Holdings Bhd was relisted on the Main Market yesterday after it was taken private by the major shareholder, T. Ananda Krishnan in 2010. It was valued at RM8.3 billion, or RM4.30 a share, at that time.

The debut on Friday saw the stock, which moved between RM3.00 and RM3.11, closed at its offer price with 269.74 million shares traded.

On the same day, the FBM KLCI kept surpassing all-time high several times before resting at 1,670.16.

However, the market ended mixed on mild profit-taking in certain heavyweights like Petronas Chemicals and Maxis, which slightly dragging down the benchmark index.

On Friday-to-Friday basis, the FBM KLCI improved 12.99 points to 1,666.35 compared with last Friday's closing of 1,653.36.

The Finance Index surged 179.23 points to 14,884.8, Industrial Index rose 21.3 points to 2,867.8 and the Plantation Index advanced 19.81 points to 8,195.61.

The FBM Emas Index jumped 69.7 points to 11,312.16, FBMT100 gained 69.14 points to 11,151 and the FBM ACE Index was 81.84 points higher at 4,282.79.

The FBM 70 Index, however, slipped 8.72 points to 12,169.73.
The weekly turnover rose to 5.956 billion shares worth RM7.976 billion from 4.477 billion shares worth RM6.601 billion last week.

The Main Market volume increased to 4.801 billion units valued at RM7.786 billion from 3.407 billion units valued at RM6.418 billion previously.

The ACE market volume jumped 883.272 million shares worth RM165.794 million from 748.351 million shares worth RM156.804 million last week.

Warrants dropped to 197.735 million units valued at RM13.55 million from 291.58 million units valued at RM19.22 million previously. -- BERNAMA