Trading on the Malaysian stock exchange is expected to be bullish in the coming week after the key index hit new six-year highs, dealers said.
"The Kuala Lumpur Composite Index, in breaching the 954 level, has certainly turned bullish as it is already at new highs not seen for six years," said Victor Wan, a senior analyst at Mercury Securities.
"The market has also crossed some of its major impediments and investors are now looking forward to an improved market performance," he said.
"Already, optimism is spreading, judging from last Friday's market performance as investors tuned into the minor euphoric conditions," he said.
However he warned investors that "caution should also be exercised as bouts of profit taking will also be prevalent and this may lead to choppy conditions."
"Still, with the bulls in attendance, any weakness or consolidation spells will be short and merely to adjust from bouts of overbought," he said adding there was still room for the market to climb, possibly to the 970-980 level over the medium term.
For the four-day holiday-shortened week ending May 5, the Kuala Lumpur Stock Exchange composite index surged 12.86 points, or 1.35 percent, to 962.09.
Average daily volume was 1.3775 billion shares worth 1.455 billion ringgit (403 million dollars) compared to 1.254 billion shares worth 1.312 billion ringgit in the previous week.