FBM KLCI Delivers Strong Start In January -- CIMB Securities

KUALA LUMPUR, Feb 4 (Bernama) -- The FTSE Bursa Malaysia KLCI (FBM KLCI) delivered a strong start to 2026, rising for four consecutive weeks to close January at 1,740 points, supported by policy optimism, improving macroeconomic signals, foreign inflows, a stronger ringgit and rising market liquidity, said CIMB Securities Sdn Bhd.

In its Monthly Wrap: Jan 2026 report, CIMB Securities said that sentiment was lifted by Prime Minister Datuk Seri Anwar Ibrahim’s New Year 2026 address on Jan 5, which emphasised governance reforms, stronger execution, and near-term economic support alongside better-than-expected fourth quarter 2025 advance gross domestic product (GDP) growth of 5.7 per cent.

“Bank Negara Malaysia’s decision to keep the overnight policy rate (OPR) unchanged also supported risk appetite,” it said.

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CIMB Securities said the FBM KLCI’s average daily trading value (ADTV) rose 21 per cent year-on-year and 43 per cent month-on-month (m-o-m) to RM2.5 billion in January 2026 from RM2.2 billion in December 2025.

It said that foreign shareholding by market capitalisation improved by 0.2 percentage points m-o-m to 19.2 per cent in Jan 2026, supported by net foreign inflows.

“Local institutional investors were the largest net buyers in Jan 2026, although net inflows declined 60 per cent m-o-m to RM1.1 billion, marking eight consecutive months of net buying.

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“Foreign investors turned net buyers in Jan 2026, recording net inflows of RM1.05 billion compared with net outflows of RM2.04 billion in January 2025. This marked the first month of net foreign buying since September 2025,” it said.

Meanwhile, CIMB Securities said that retail investors were the largest net sellers in January 2026, with net outflows of RM2.2 billion, marking their fifth consecutive month of net selling.

It said that the FBM KLCI was the third best-performing index among the MIST (Malaysia, Indonesia, Singapore and Thailand) markets in January 2026, gaining 3.6 per cent m-o-m and outperforming Indonesia’s Jakarta Composite Index, which declined 3.7 per cent m-o-m.

“However, it underperformed Singapore’s Straits Times Index (+5.6 per cent m-o-m) and Thailand’s Stock Exchange of Thailand (+5.2 per cent m-o-m).

“By sector, property, financial services, and real estate investment trusts were the top three gainers in January 2026, while healthcare, construction, and energy were the weakest performers,” it added.

-- BERNAMA