KUALA LUMPUR: Bursa Malaysia has seen a sharp pick-up in trading activity since the start of 2026, with average daily trading value climbing to as high as RM4.2 billion, a level not seen in nearly two years.
The surge in turnover comes amid a stronger market momentum, backed by sustained foreign participation and broad-based gains across key sectors, particularly property, financials and technology.
Maybank Investment Bank Bhd (Maybank IB) analysts Lim Sue Lin and Amirul Rusydy said Bursa's average daily trading value for January-to-date averaged RM3.1 billion, but peaked at RM4.2 billion over the 18 trading days.
The last time Bursa recorded similar trading momentum was in July 2024, when average daily trading value reached RM4.3 billion, following a wave of policy-driven optimism linked to the National Energy Transition Roadmap and subsequent data centre investments.
Maybank IB said foreign investor participation has also remained steady at around 36 per cent, slightly below the 2025 full-year average of 41 per cent, a year that also saw foreign outflows of more than RM21 billion, the largest since 2020.
"The pick-up in foreign participation in the Malaysian market since late 2025 has continued its momentum into 2026. We have started the year strong," Lim and Amirul said in a Maybank IB strategy note.
They said this was supported by advanced estimates showing fourth-quarter 2025 gross domestic product (GDP) growth exceeding five per cent, alongside a stronger ringgit that moved below RM4 per US dollar on Jan 26.
The Statistics Department is expected to release the official fourth-quarter GDP figures on Feb 13.
Yesterday, the FTSE Bursa Malaysia KLCI continued to scale fresh multi-year highs, rising 27.18 points or 1.56 per cent to close at 1,771.25, its highest level since Oct 10, 2018.
This represents a gain of more than 100 points, or an impressive 6.08 per cent, in less than a month from 1,669.76 on Jan 2, the first trading day of 2026.
At press time, the benchmark index had eased 11.97 points or 0.68 per cent to 1,759.28, still holding at multi-year high levels.
Maybank IB said the improvement in market liquidity has coincided with the FBM KLCI breaking past key resistance levels, raising the possibility of the benchmark testing higher levels if trading momentum and foreign inflows remain supportive.
Banking stocks have emerged as the main drivers of the rally, benefitting from resilient economic growth, stable interest rates and improving dividend appeal, while selective non-financial names have also attracted accumulation.
"Improved market liquidity is a critical ingredient for a sustained upcycle," Maybank IB said, adding that a continuation of strong trading value would be key to supporting further upside in the benchmark index.