SHARES on Bursa Malaysia are likely to be firm this week, but the upside may be capped by profit-taking activities.
Analysts, meanwhile, expect modest reaction to the 2014 Budget.
MIDF Research said the budget provides no material surprises that may spur further trading interest in the stock market. It expects the market undertone, however, to continue to be buoyant as the liquidity situation is expected to remain accommodative, at least in the near term.
Shares on the Bursa scaled higher last week amid bargain-hunting.
The FTSE Bursa Malaysia KLCI is also expected to climb beyond the 1,826.22 level on the back of the fiscally prudent budget, rising foreign fund inflows and improved global sentiment.
Meanwhile, Affin Investment Bank vice-president and head of retail research Dr Nazri Khan was bullish, saying the budget and fiscal structural reforms are likely to boost sentiment and spur more foreign buying.
During the week just ended, shares continued to gain starting Monday and registered a two-day all-time high on Wednesday (1,814.11) and Thursday (1,818.93).