KUALA LUMPUR, Feb. 5 (Xinhua) -- Malaysia's equity market is poised for stronger price momentum in 2026, supported by a firmer ringgit, improving foreign fund flows and easing external risks.
MBSB Research said in a note on Thursday that it expects the local equity market to gain further ground, underpinned by a healthy economy as well as corporate earnings outlook, supported by undemanding equity valuations, and aided by pent-up buying from the returning inflow of foreign funds.
On the back of strengthening the ringgit, Malaysia's equity market recorded a 1 billion ringgit (about 253.33 million U.S. dollars) inflow of foreign funds in January 2026.
In a recent report, RHB Investment Bank also noted an uptick in foreign portfolio inflows this year, as Malaysia's equity market lagged regional peers in 2025.
"Malaysia's robust domestic fundamentals and reform initiatives have helped it stand out among regional emerging market economies," said the research house. ■
