The Bank of Russia unexpectedly maintained its key interest rate at a record-high 21% , defying analysts’ expectations of another significant hike as inflation remains stubbornly elevated. The decision marks a shift toward a more measured approach in balancing economic growth and price stability. Key Details Inflation Concerns: Annual inflation climbed to 8.9% in November, well above the central bank’s 4% target , with inflation expectations reaching 13.9% in December. Policy Rationale: The central bank cited the significant tightening of monetary conditions after October’s 200-basis point hike as sufficient to resume disinflationary processes. Governor Elvira Nabiullina emphasized avoiding both economic overheating and severe slowdowns. Economic Overheating: Elevated government spending on the war in Ukraine and social programs, coupled with labor shortages and rising wages, have fueled strong domestic demand, exacerbating price pressures...
LCTH Corporation Berhad (LCTH) Close Position
Recall that we previously issued a buy call on LCTH (3-March 2016), after observing the share price staging a technical breakout to confirm a bullish ‘inverted head and shoulder’ chart pattern. However, the share price has failed to rally further but instead underwent a profit-taking phase. Both RSI and Stochastic have also rolled over, with the latter reversing strongly from its overbought zone to imply the heavy selling pressure. With the unappealing technical picture, we decided to close position on the stock for now but will re-look into it once its technical outlook turns compelling again.
MMC Corporation Berhad (MMCCORP) Not Rated
Yesterday, MMCCORP rose 6.0 sen (3.5%) to RM1.76 on trading volume, which hit a six-month high. Previously in Nov-2015, MMCCORP commenced a downtrend which saw its share price retreating by as much as 30% from a high of RM2.31 to last week’s low of RM1.61. Nevertheless, the MACD has ceased to make new lows over the past few months, and this reflects that selling pressure has depleted over this period. Furthermore, yesterday’s bullish move has caused the share price to break above its downwardsloping trend line to paint a more positive technical outlook. Should MMCCORP break above the RM1.78 (R1) (23.6% Fibonacci Resistance/ 50-day SMA) resistance, the next resistance level to look forward to is RM1.89 (R2). Immediate supports are located at RM1.69 (S1) and RM1.61 (S2).
Recall that we previously issued a buy call on LCTH (3-March 2016), after observing the share price staging a technical breakout to confirm a bullish ‘inverted head and shoulder’ chart pattern. However, the share price has failed to rally further but instead underwent a profit-taking phase. Both RSI and Stochastic have also rolled over, with the latter reversing strongly from its overbought zone to imply the heavy selling pressure. With the unappealing technical picture, we decided to close position on the stock for now but will re-look into it once its technical outlook turns compelling again.
MMC Corporation Berhad (MMCCORP) Not Rated
Yesterday, MMCCORP rose 6.0 sen (3.5%) to RM1.76 on trading volume, which hit a six-month high. Previously in Nov-2015, MMCCORP commenced a downtrend which saw its share price retreating by as much as 30% from a high of RM2.31 to last week’s low of RM1.61. Nevertheless, the MACD has ceased to make new lows over the past few months, and this reflects that selling pressure has depleted over this period. Furthermore, yesterday’s bullish move has caused the share price to break above its downwardsloping trend line to paint a more positive technical outlook. Should MMCCORP break above the RM1.78 (R1) (23.6% Fibonacci Resistance/ 50-day SMA) resistance, the next resistance level to look forward to is RM1.89 (R2). Immediate supports are located at RM1.69 (S1) and RM1.61 (S2).
Source: Kenanga Research, 08 March 2016
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