Kuala Lumpur, 26 January 2026 – Malaysia’s stock market extended its strong run on Monday, with the FTSE Bursa Malaysia KLCI (FBM KLCI) closing at its highest level in more than seven years, driven by robust buying interest in blue-chip shares from both local institutional and foreign investors.
The benchmark index climbed 24.08 points or 1.40 per cent to 1,744.07 at the close, surpassing its previous peak of 1,740.59 recorded on 17 October 2018. The index also reached an intraday high of 1,746.98, reflecting broad-based investor optimism.
Market breadth was mixed, with decliners outnumbering gainers, but overall turnover improved as investors remained active. Total volumes rose to 3.50 billion units worth RM4.07 billion, up from 3.40 billion units worth RM3.49 billion the previous Friday.
Blue Chips Lead the Rally
Analysts attributed the stellar performance to strong demand for heavyweights across key sectors, supported by improving macro fundamentals, a strengthened ringgit and positive sentiment toward Malaysian equities. Rakuten Trade Sdn Bhd’s vice-president of equity research, Thong Pak Leng, noted that sentiment remains skewed to the upside and that the index’s technical strength suggests the rally has further room to run so long as the FBM KLCI holds key support levels.
The ringgit’s appreciation to around 3.97 against the U.S. dollar was also cited as a positive driver, boosting investor confidence and underpinning foreign inflows into local equities. IPPFA Sdn Bhd director of investment strategy and economist Mohd Sedek Jantan said this “currency-led sequencing”, where the currency leads equities, points to a more durable, fundamentals-based repricing of Malaysian markets rather than short-term speculation.
Among heavyweights, Malayan Banking Bhd (Maybank) added 14 sen to RM11.50, Public Bank gained nine sen to RM4.87, CIMB Group advanced 32 sen to RM8.62, while Tenaga Nasional and IHH Healthcare also ended higher. Nestlé Malaysia, Dutch Lady Milk Industries, Hong Leong Bank and BLD Plantation were among the top gainers on the broader board.
Market Indicators and Sector Performance
Key Bursa Malaysia indices also posted gains:
- FBM Top 100 Index: up 144.37 points to 12,600.17
- FBM Emas Index: up 138.61 points to 12,799.15
- FBM Mid 70 Index: up 68.61 points to 17,630.83
- FBM Emas Shariah Index: up 90.74 points to 12,400.39
Meanwhile, the FBM ACE Index eased, and trading across sectors reflected active participation in consumer products, industrials, financial services and property segments.
Outlook
Market watchers say the strong performance highlights renewed investor appetite for Malaysian equities as geopolitical and economic uncertainties linger regionally, and as global fund managers continue to increase exposure to domestic stocks. Technical analysts forecast the FBM KLCI’s next support and resistance levels to remain within the 1,720–1,750 range in the near term.
The upbeat close, hitting levels not seen since late 2018, underscores improving confidence in the local market and may encourage further inflows if economic indicators and corporate earnings continue to support equity valuations.
