The FTSE Bursa Malaysia KLCI (FBM KLCI) is likely to trade sideways next week on mixed external factors and the ringgit's volatility.

Affin Investment Bank vice president/head of retail research, Dr Nazri Khan, said upside factors from improved US economic data would be capped by the choppy

reaction to the Ukraine-Russia tensions, the US Federal Reserve's earlier-then-expected interest rate hike and the ringgit's volatility.

"We expect the index to gradually trend higher in tandem with Wall Street and its Asian peers in the wake of the upbeat US economic data.

"However, the fact that our local currency has dipped between 2.1 per cent to 3.31 per cent against the US dollar, may suggest some volatility in the local unit which will cap any rallies on Bursa Malaysia next week," he told Bernama.

Nazri said although it is believed that stocks should temporarily consolidate, positive signs from an improved US economy might indicate good buying opportunities.

"The upside surprise seen in the US economic data should reinforce expectations that the world's largest economy has overcome the slowdown in activity and meet its normalised gross domestic product (GDP) growth target of 2.8 per cent for 2014, benefiting most Asian trading partners," he added.

On the local front, he said Bank Negara Malaysia's bullish statement on tame inflation of between three and four per cent this year, and a robust GDP growth

projection of between 4.5 per cent and 5.5 per cent against 4.7 per cent in 2013, should lend some support towards stabilising sentiment on Bursa.

On a week-to-week basis, the FBM KLCI rose 15.36 points to 1,820.48.

The Finance Index strengthened 150.74 points to 16,439.06, and the Industrial Index gained 18.40 points to 3,166.91, while the Plantation Index lost 46.37 points to 8,839.16.

The FBM Emas Index perked 105.46 points to 12,617.45, the FBMT100 Index improved 101.62 points to 12,281.51, the FBM 70 rose 106.76 points to 13,859.21

and the FBM Ace expanded 54.09 points to 6,686.98.

Weekly turnover fell to 7.29 billion shares worth RM10.08 billion from last Friday's 8.45 billion shares worth RM10.34 billion.

Main market volume declined to 5.27 billion shares valued at RM9.47 billion from 6.25 billion shares valued at RM9.74 billion last week.

Warrant turnover decreased to 94.04 million units worth RM10.9 million from 106.39 million units worth RM11.62 million previously.

The ACE market volume expanded to 1.9 billion shares valued at RM583.36 million from 1.78 billion shares valued at RM583.36 million last week.-- Bernama