2Q26 earnings: no surprises; stock needs higher ADV to re-rate: Quick Note

Research evidence excerpt

2Q26 earnings: no surprises; stock needs higher ADV to re-rate: Quick Note

Nomura | Bursa Malaysia 30 July 2026

and companies outside the group, although many companies still need to complete

their internal governance and strategic-planning processes. Bursa will allow

companies to determine their own strategies, metrics and quantitative targets instead

of imposing standard parameters at this stage. Management may introduce a

leaderboard or awards for best-performing companies, while Bursa will reassess the

programme’s scope and the potential for mandatory participation towards end-2027E.

Bursa also plans to announce its own 2027 to 2030 strategic roadmap and

MyValueUp plan in 4Q26E.

• Market-development initiatives should broaden index representation, strengthen

the IPO pipeline and support foreign participation. Management expects to

announce the final details of the proposed expansion from the FBM KLCI 30 to 50

constituents in August 2026E, including a phased implementation plan to ensure a

smooth transition. The expansion would increase the index’s Main Market

capitalisation coverage from 59% to around 70% and improve sector representation.

Bursa also sees encouraging interest in its dual-listing arrangement with Hong Kong

Exchanges, including enquiries from Malaysian companies and one or two Hong

Kong-listed companies. Management does not expect dual listings to dilute domestic

liquidity and believes the initiative could support Malaysian equity average daily value

and market capitalisation over the longer term. Bursa also raised its FY26E IPO

market-capitalisation target based on a strong 2H26E pipeline comprising both large

and mid-sized companies, although issuers will ultimately determine listing timing. To