Bursa Malaysia Growth Expected to Moderate in Second Half Amid Global Uncertainty

Bursa Malaysia's financial performance is anticipated to continue its positive trajectory in the latter half of 2026, albeit at a moderated pace. This outlook is shaped by prevailing global economic uncertainties and escalating external risks.

Despite these headwinds, the company posted a robust first half, with after-tax profit, zakat, and minority interests (PATAMI) reaching RM144.6 million. This marks a 15.2% year-on-year increase from the RM125.5 million recorded in the same period last year. The growth was primarily fueled by heightened stock trading activity, listing fees, and strong momentum in initial public offerings (IPOs).

Looking ahead, analysts foresee continued support for Bursa Malaysia's performance. Key drivers include a healthy IPO pipeline, with expectations of one or two large-scale IPOs before year-end. Additionally, more stable interest rates could potentially rekindle investor interest in the equity market. The FTSE Bursa Malaysia KLCI (FBM KLCI) is projected to trade within the 1,730 to 1,800 point range by the close of 2026.

Economic analysts also point to the sustained momentum in daily trading values and ongoing IPO activity as crucial supports. This aligns with growth themes driven by the 13th Malaysia Plan (RMK-13) and increased investment in the data center sector. The revised IPO market capitalization target of RM34 billion is considered achievable, supported by improving market sentiment and investor interest in new growth sectors. However, the realization of this target remains sensitive to global market conditions, including potential delays in U.S. Federal Reserve interest rate cuts or economic crises that might cause companies to postpone listing plans.