KUALA LUMPUR:The FTSE Bursa Malaysia KLCI (FBM KLCI) is poised for upward movement next week, bolstered by stronger market participation amid positive sentiment driven by both domestic and external economic data.

"As the composite index revisits the 1,600 level, this momentum is expected to persist, supported by several key factors that suggest a favourable market outlook,"UOB Kay Hian Wealth Advisors head of investment research Mohd Sedek Jantan told Bernama.

He said Malaysia's October export growth, with a 3.1 per cent year-on-year increase, highlights the strength of the country's trade sector, especially in electronics and electrical exports, which could continue to rise in late 2024 due to global technology demand.

"Optimism about a potential US Federal Reserve rate cut in December could lower global borrowing costs, benefitting Malaysian technology firms. Additionally, stocks in the data centre supply chain and the push for a second 5G provider are strengthening Malaysia's market outlook, making it an attractive destination for investors. This is despite potential supply chain challenges and uncertainties surrounding foreign capital inflows," he added.

"With many S&P 500 stocks reaching new highs, Malaysia's relatively lower market valuations present an attractive diversification opportunity for investors.

"While uncertainties around foreign capital inflows exist, Malaysia's stable interest rates, clear policy direction, and positive country credit rating outlook make it an appealing destination for foreign investment," he added.

Moreover, Mohd Sedek said the equity market may receive a seasonal boost from year-end window dressing, where fund managers typically rebalance their portfolios to highlight top-performing stocks.

"Although this effect is usually short-term, it could help push the FBM KLCI higher, provided that the broader economic conditions remain supportive," he said.

Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said looking ahead, all eyes will be on China's annual Central Economic Work Conference, a pivotal event expected to outline key policy measures and stimulus strategies for the world's second-largest economy.

"Investors are also closely monitoring the release of China's November consumer price index, inflation data on Tuesday (Dec 10) and trade data on Wednesday (Dec 11), which could provide critical insights into the nation's economic trajectory.

"Back home, the FBM KLCI has displayed stability over the last 10 days and closed above the critical 1,600 level for several days, while breakout above 1,617 with strong trading volume could signal short-term bullish momentum, targeting the resistance levels at 1,625 and 1,650," he said.

Thong added that for the upcoming week, the index is expected to trade within the 1,605 - 1,625 range.

On a Friday-to-Friday basis, the FBM KLCI improved 18.96 points to 1,613.25 from 1,594.29 in the previous week.

The FBM Emas Index surged 215.77 points to 12,346.90 and the FBMT 100 Index rose 203.91 points to 12,027.70.

Meanwhile, the FBM 70 Index soared 540.39 points to 18,400.21, the FBM Emas Shariah Index jumped 288.44 points to 12,323.13, and the FBM Ace Index was 175.54 points firmer at 5,307.19.

By sector, the Financial Services Index shed 24.42 points to 19,165.61 and Healthcare Index jumped 134.19 points to 2,303.68.

The Plantation Index soared 208.44 points to 7,740.26 the Technology Index went up 3.37 points to 61.85, the Energy Index increased 16.84 points to 829.13, and the Industrial Products and Services Index bagged 5.51 points to 175.80.

Turnover expanded to 16.18 billion units worth RM14.54 billion compared with 14.92 billion units worth RM16.82 billion in the previous week.

The Main Market volume improved to 8.74 billion shares valued at RM13.23 billion from 8.40 billion shares valued at RM15.63 billion last week.

Warrants turnover advanced to 4.86 billion units worth RM1.36 billion compared with 4.18 billion units worth RM440.95 million previously.

The Ace Market volume rose to 2.53 billion shares valued at RM835.68 million versus 2.38 billion shares valued at RM746.89 million last week.