KUALA LUMPUR, Jan 26 — Bursa Malaysia surged to its highest level since 2018 this afternoon as the ringgit strengthened further against the US dollar, boosting interest in domestic‑oriented stocks, particularly financial counters.

The gains followed earlier reporting by Bernama, which noted that both the equity market and the ringgit were benefiting from renewed confidence in Malaysia’s economic positioning and its growing role in the artificial intelligence supply chain.

IPPFA Sdn Bhd investment strategist Mohd Sedek Jantan said the alignment between the FBM KLCI and the ringgit signalled “a fundamental reassessment of Malaysia’s macro risk profile,” adding that “the strengthening of the ringgit has preceded and stabilised equity participation.”

He said the pattern suggested investors were “recalibrating Malaysia’s risk premium rather than chasing short‑term returns.”

At 3pm, the FBM KLCI rose 22.47 points to 1,742.46, marking its strongest level since October 2018.

The ringgit appreciated as much as 1 per cent to 3.9678 against the US dollar earlier in the day, its firmest position since May 2018.

Market breadth was negative with 626 decliners and 501 gainers, while 473 counters were unchanged.

Turnover reached 2.32 billion shares worth RM2.33 billion.

Bloomberg reported that global funds have bought US$256 million (RM1.01 billion) of Malaysian equities on a net basis this month, the highest among emerging Asian markets.

Analysts cited Malaysia’s improving fiscal trajectory, resilient domestic demand and rapid expansion in data‑centre investments as factors supporting both the currency and equities.

Maybank Securities’ Tareck Horchani said Malaysia’s “steady fiscal trajectory and stable economic growth” had strengthened its appeal to foreign investors, particularly in infrastructure, financial services and renewable energy.

Banking stocks led the index higher, with Maybank, Public Bank and CIMB all advancing.

Among the most active counters, Capital A, AirAsia X and Press Metal recorded gains.

Top gainers included Dutch Lady Milk Industries and Hong Leong Bank, while BLD Plantation and Malaysian Pacific Industries were among the major decliners.

Sector indices were mostly higher, with the Financial Services Index jumping 394.32 points to 21,197.49.

The Energy Index was the only major sector to retreat.

Bloomberg also reported that the ringgit is Asia’s best‑performing currency so far in January, supported by expectations of stable monetary policy and strong foreign direct investment flows.

Goldman Sachs said Malaysia’s tech exports, FDI momentum and Bank Negara Malaysia’s steady policy stance could help the ringgit outperform regional peers again in 2026.