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Russia Holds Key Rate at 21% Amid Surging Inflation

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...

Market Daily Report: FBM KLCI up 11.2 points as US bond yields ease

KUALA LUMPUR (April 27): The FBM KLCI rose 11.2 points or 0.6% to close at 1,863.47 today as Malaysian stocks took cue from US equities' firm performance overnight after US government bond or Treasury yields eased below 3%. At Bursa Malaysia today, nearly all indices closed in positive territory at 5pm. The small-cap index finished 67.66 points or 0.47% up at 14,545.46 points. “It wasn’t a surprise. There was a nice rally of 1% in US stocks last night that gave a bit of inspiration to stocks in this region of the world," Inter-Pacific Securities Sdn Bhd head of research Pong Teng Siew told theedgemarkets.com today. “This was because the impact of rising yields in the US is fading off," Pong said. CNBC reported that US government debt yield slipped on Thursday as a fresh wave of buying pressured the 10-year Treasury note rate to under 3 percent. It was reported that the yield on the benchmark 10-year Treasury note was lower at around 2.998 per...

Market Daily Report: FBM KLCI flat after falling with China stocks as US yield concerns remain

KUALA LUMPUR (April 26): The FBM KLCI closed 0.34 point higher on bargain hunting after tumbling with China shares. Reuters reported that China stocks tumbled on Thursday as investors were spooked by a US probe of Huawei, triggering a sell-off in tech firms as trade tensions between Beijing and Washington simmered just below the surface. Meanwhile, global market concerns on rising US government bond or treasury yields at above 3% remain. In Malaysia, Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng told theedgemarkets.com that there is still concern on rising US government bond yields. “Now, not only that we’re seeing that the 10-year US bond yield is high, but also the short-term [interest rates] are also picking up,” Wong said. He noted that this indicates concern about potential inflation and interest rate hike. At Bursa Malaysia, the KLCI closed at 1,852.27 at 5pm after tumbling to its intraday low at 1,846.54. The KLCI had earlier ri...

Market Daily Report: FBM KLCI extends losses as Asian stocks tank amid higher US treasury yields

KUALA LUMPUR (April 25): The FBM KLCI fell 13.41 points or 0.7% with Asian stock markets today following US equities' sharp overnight drop. Global shares declined as US government bond or treasury yields rose above 3%. In Malaysia, Hong Leong Investment Bank Bhd head of retail research Loui Low told theedgemarkets.com that the KLCI's downtrend continued as investors were cautious about the impact from rising US government bond or yields which could trigger a selloff in risky assets such as stocks. Reuters reported that creeping gains in US treasury yields are fuelling fears that portfolio managers may move money into safer fixed-income securities at the expense of riskier assets like stocks and emerging markets. The 10-year yield, a benchmark for global borrowing costs, has been driven steadily higher by a combination of concerns over inflation, growing debt supply, and rising Federal Reserve borrowing costs. It was reported that the 10-year US Trea...

Market Daily Report: FBM KLCI falls for third day as rising US yields could prompt fund outflow

KUALA LUMPUR (April 24): Malaysian stocks ended lower today for the third consecutive day, with the benchmark FBM KLCI down by 0.8% or 15.02 points as investors remained wary on how the rising US yields could affect the outflow from emerging markets. The KLCI closed at 1,865.34 points, edging away from its record level of 1,895.18 last Thursday. Across the region, Asian shares have mainly advanced higher with Japan's Nikkei 225 gaining 0.86% or 190.08 points to settle at 22,278.12 points, while Hong Kong's Hang Seng Index was up by 1.26% or 381.84 points to close at 30,636.24 points. Reuters reported that the Japanese shares hit a two-month closing high with financials leading gains after US bond yields spiked to four-year highs and as investors remained optimistic about upcoming earnings. The yield on the benchmark 10-year Treasury note climbed towards 3%, reaching a new 2018 peak of 2.99%, the highest level since the beginning of 2014. This was at t...

Market Daily Report: FBM KLCI down 0.4% with Asian shares as US government bond yields rise

KUALA LUMPUR (April 23): The FBM KLCI fell 7.39 points or 0.4% while Bursa Malaysia's small-cap index dropped by a larger quantum as Asian shares faced headwinds from higher US government bond yields. Reuters reported that the spike in oil prices has driven up both market expectations of future inflation and long-term bond yields. Yields on 10-year Treasuries are at the highest since early 2014 at 2.977 percent and again threatening the hugely important 3 percent bulwark. The last time yields neared this number in 2013 it rocked risk appetite and sent stocks sliding. At Bursa Malaysia today, the KLCI closed at 1,880.36. Across Asia, Japan’s Nikkei 225 fell 0.33% while Hong Kong’s Hang Seng declined 0.54%. In Malaysia, Rakuten Trade Sdn Bhd vice president of research Vincent Lau told theedgemarkets.com: “If you look at the regional market, you can see that the market is afraid of all the uncertainties that are coming up. The rise in the US 10-year note ...

Market Daily Report: KLCI up 15.86 points to close at all-time high amid commodity gains

KUALA LUMPUR (April 19): The FBM KLCI jumped at the 11th-hour for a 15.86-point or 0.8% rise to close at its record high amid an uptrend in aluminium and crude oil prices. At 5pm, the KLCI closed at 1,895.18. The KLCI, at current levels, is not far from its record intraday high at 1,896.23 seen in July 2014. Today, Rakuten Trade Sdn Bhd vice president of research Vincent Lau told the theedgemarkets.com that market optimism was driven by higher aluminium and crude oil prices. “The stronger commodity prices are putting the synchronised global growth story back into spotlight especially for countries like Malaysia. With oil prices hovering near the US$75 per barrel level, it’s good for the country’s economy as we are still a net oil exporter,” Lau said. Reuters reported that oil prices rose on Thursday to their highest since late 2014 as US crude inventories declined, moving closer to five-year averages, and after sources told Reuters top exporter Saudi Arabi...

Market Daily Report: FBM KLCI down as GE14 sentiment curbs Bursa trading volume

KUALA LUMPUR (April 18): The FBM KLCI fell 1.17 points or 0.1% on profit taking after the index climbed yesterday to close at its highest in about four years. At 5pm today, the KLCI settled at 1,879.32 after rising to its intraday high at 1,884.84. Yesterday, the KLCI rose 1.73 points to close at 1,880.49. Today, TA Securities Holdings Bhd wrote in a note: "Even as the index may attempt to climb higher due to sustained buying support on key heavyweights, lower liners and small caps should stall on profit-taking pending local catalysts. A convincing push above 1,880 on positive market breadth is needed to aim for the record high of 1,896.23 from July 2014, which will act as a significant hurdle." Inter-Pacific Securities Sdn Bhd head of research Pong Teng Siew told theedgemarkets.com today that volume across Bursa Malaysia remained thin as investors were still cautious ahead of Malaysia's 14th general election (GE14). Polling day falls on May 9. ...

Market Daily Report: KLCI up on commodity gains as TA says Malaysian shares appear overbought

KUALA LUMPUR (April 17): The FBM KLCI closed up 1.73 points or 0.1% as crude oil and aluminium price gains supported Malaysian shares. At 5pm, the KLCI closed at 1,880.49 after rising to its intraday high at 1,885.12. At 5pm, the KLCI rose on gains in stocks like Petronas Dagangan Bhd, Petronas Gas Bhd and Press Metal Aluminium Holdings Bhd. The KLCI, at current levels, is not far from its record high at 1,896.23 in September 2014. Today, TA Securities Holdings Bhd technical analyst Stephen So said the KLCI appeared overbought. Based on movements in the broader market, Soo said "there is no confirmation" the current rally in the KLCI can be sustained. Across Bursa Malaysia today, 3.09 billion shares were traded for RM2.79 billion. Petronas Dagangan, Petronas Gas and Press Metal Aluminium were among the top gainers. Petronas Dagangan and Petronas Gas shares rose on higher crude oil prices. Reuters reported that oil prices rose on Tuesday amid wo...

Market Daily Report: KLCI surges 10.29 points on TM spike as US stock futures rise

KUALA LUMPUR (April 16): The FBM KLCI rose 10.29 points or 0.6% to its intraday high, lifted mainly by Telekom Malaysia Bhd's 11th-hour share price spike and as US stock futures traded higher. Reuters reported that US stock futures firmed and oil fell on Monday as investors wagered the latest US-led strike on Syria would not escalate into a wider conflict, though Asian markets turned mixed as selling in bank shares slugged Chinese indexes. "(US President Donald) Trump was able to enforce his chemical weapons red line without crossing the threshold for Russian retaliation," Reuters quoted analysts at JPMorgan as saying in a note. "Stocks were concerned about a prolonged and expanded US campaign towards Syrian President Bashar al-Assad and that doesn't look probable," the analysts said. At Bursa Malaysia, the KLCI closed at 1,878.76 at 5pm while Telekom Malaysia added 21 sen to RM5.63 among Bursa Malaysia top gainers. Among US s...

Market Daily Report: Malaysian stocks slip on profit-taking

KUALA LUMPUR (April 13): Malaysian stocks closed lower today due to profit-taking after the surge early this week. The benchmark FBM KLCI ended the day 5.15 points or 0.28% lower at 1,868.47 points, dragged down by Astro Malaysia Holdings Bhd, Petronas Gas Bhd and MISC Bhd. The index was trading in the range of 1,866.02 points and 1,871.13 points throughout the day. Market breadth was positive with 513 gainers compared with 323 decliners. A total of 477 counters were unchanged. Trading volume decreased to 2.72 billion shares worth RM2.19 billion compared with 3.27 billion shares worth RM2.34 billion on Thursday. Public Investment Bank Bhd head of research Ching Weng Jin told theedgemarkets.com that investors decided to take some profits ahead of the 14th General Election on May 9. “There was no major sell-down today. It (KLCI) didn’t drop much," he said. “Regional markets looked positive except for China. Even the US-Russia conflict was off the tabl...

Market Daily Report: KLCI up on last-minute spike as Bursa small caps fall

KUALA LUMPUR (April 12): The FBM KLCI jumped 3.73 points or 0.2% on last-minute buying in blue-chip stocks Kuala Lumpur Kepong Bhd (KLK), Petronas Gas Bhd, Hong Leong Bank Bhd and Hong Leong Financial Group Bhd. At 5pm, the KLCI erased losses to settle at 1,873.62 after falling to its intraday low at 1,865.14 as news of a possible US military strike in Syria hit Asian market sentiment. In Malaysia, Inter-Pacific Securities Sdn Bhd head of research Pong Teng Siew told theedgemarkets.com: “It doesn’t change the fact that there was profit taking in the earlier part and we always come across last-minute surprises like this. Hong Leong Bank, Hong Leong Financial, Petronas Gas helped to push up the index in the last minutes. “On the other hand, small caps still remained in profit-taking mode.” At 5pm, Bursa Malaysia's small-cap index fell 85.09 points or 0.56% to close at 14,963.97. Across Bursa Malaysia, 3.27 billion shares worth RM2.34 billion ...

Market Daily Report: KLCI gains as Bursa share volume exceeds four billion amid GE14 certainty

KUALA LUMPUR (April 11): The FBM KLCI rose 8.91 points or 0.5% while volume across Bursa Malaysia exceeded four billion shares amid certainty on Malaysia's 14th general election (GE14) timing. Yesterday, the Election Commission announced that GE14's polling date will be on May 9 while the nomination date is on April 28. At a press conference, Election Commission chairman Tan Sri Mohd Hashim Abdullah said the election writ would be issued today (April 11) while early voting will be held on May 5. Today, the Prime Minister's Office said in a statement the Government has declared GE14 polling day on May 9 as an additional public holiday to enable Malaysians to fulfill their obligation as voters. At 5pm, the KLCI closed at 1,869.89 as Bursa Malaysia's small-cap and technology indices gained 1.43% and 2.07% respectively. Across Bursa Malaysia, 4.65 billion shares worth RM3.21 billion changed hands. Areca Capital Sdn Bhd chief executive officer ...

Market Daily Report: FBM KLCI gains 11.27 points after Xi’s speech calms trade war fears

KUALA LUMPUR (April 10): The FBM KLCI jumped 11.27 points or 0.6% after China President Xi Jinping struck a conciliatory tone in his speech today, in which he highlighted China's plan to widen market access for foreign investors, raise the foreign ownership limit in the automobile sector and protect intellectual property of foreign firms. Reuters reported that US stock futures rallied, Asian equities bounced and the safe haven yen fell on Tuesday, as Xi Jinping promised to lower import tariffs on products including cars, helping soothe investor jitters over an escalating US-China trade row. Xi was speaking at the Boao Forum for Asia in Hainan province. At Bursa Malaysia, the KLCI closed at 1,860.98 at 5pm. Trade volume across Bursa Malaysia was 3.73 billion shares worth RM2.71 billion. Yesterday, trade volume was 2.22 billion shares worth RM2.1 billion. Across Asian share markets, Japan’s Nikkei 225 rose 0.54% while Hong Kong’s Hang Seng increased 1.65%...

Market Daily Report: KLCI up 12.7 points as Trump tweet softens trade war fears

KUALA LUMPUR (April 9): The FBM KLCI increased 12.7 points or 0.7% as Asian shares rose with US equity futures. World shares rose after US President Donald Trump expressed optimism on US-China ties despite the current trade spat between both countries. Trump said via Twitter yesterday President Xi Jinping and him will always be friends, no matter what happens with the US-China dispute on trade. Trump tweeted: "China will take down its trade barriers because it is the right thing to do. Taxes will become reciprocal and a deal will be made on intellectual property. Great future for both countries!" At Bursa Malaysia today, the KLCI closed at 1,849.71 at 5pm. Across Asia, Japan's Nikkei 225 gained 0.51% while Hong Kong’s Hang Seng climbed 1.29%. Among US equity futures, the Dow Jones mini Futures rose 0.79% as at 5:46pm. Reuters reported that global stocks rose on Monday as the US government played down fears of a trade war with China that has ro...

Market Daily Report: FBM KLCI flat, Bursa small caps fall as GE14 looms

KUALA LUMPUR (April 6): The FBM KLCI erased losses at the 11th hour to close 0.88 point or 0.05% higher while Bursa Malaysia small-cap stocks fell after Prime Minister Datuk Seri Najib Tun Razak announced today the Malaysian Parliament will be dissolved tomorrow. The dissolution is to make way for the nation's 14th general election (GE14), which is expected to be held within 60 days after the Parliament's dissolution. At 5pm today, the KLCI closed at 1,837.01 after trading between 1,826.32 and 1,839.07. Bursa Malaysia's small-cap index fell 68.07 points or 0.49% to end at 13,908.16. “It’s in the holding mode, as the market waits for the outcome of the election," Inter-Pacific Securities Sdn Bhd head of research Pong Teng Siew told theedgemarkets.com. "I still think the benchmark KLCI may react strongly but only post-election, since most companies do not want to take big positions now, one way or the other,” Pong said. Malaysian shar...

Market Daily Report: FBM KLCI rebounds as global trade war fears ebb

KUALA LUMPUR (April 5): The FBM KLCI closed 20.19 points or 1.11% higher as fears of a global trade war eased. China-US trade spat concerns ebbed on news the US expressed willingness to negotiate a resolution with China. Reuters reported Asian shares bounced from two-month lows on Thursday as world equities recovered from a selloff triggered by escalating Sino-US trade tensions, with investors hoping a full-blown trade war between the world’s two biggest economies can be averted. At Bursa Malaysia, the KLCI closed at 1,836.13. The 30-stock index rebounded today after falling 34.84 points or 1.88% yesterday. Today, the KLCI's top gainer, in percentage terms, was Genting Malaysia Bhd followed by YTL Corp Bhd. Genting Malaysia closed 30 sen or 6.54% higher at RM4.89 while YTL Corp rose eight sen or 6.11% to RM1.39. Rakuten Trade Sdn Bhd vice president Vincent Lau told theedgemarkets.com that the Malaysian share market took the cue from a stronger perfor...

Market Daily Report: FBM KLCI plunges 1.88% after China retaliates against US tariffs

  KUALA LUMPUR (April 4): The FBM KLCI plunged 34.84 points or 1.88% after China's retaliation against US import tariffs hit Asian stock markets. Reuters reported that China hit back on Wednesday at US President Donald Trump administration’s plan to slap tariffs on US$50 billion in Chinese goods. It was reported that China retaliated with a list of similar duties on key US imports including soybeans, planes, cars, whiskey and chemicals. It was reported that China announced it would impose additional tariffs of 25 percent on 106 US products including soybeans, autos and chemicals. US stock futures and Treasury yields also fell on the news. At Bursa Malaysia, the KLCI closed at 1,815.94 at 5pm after hitting its intraday low at 1,811.56. Maxis Bhd, Digi.Com Bhd and Genting Malaysia Bhd were among blue chips which dragged the KLCI lower. Across Bursa Malaysia, 3.28 billion shares worth RM2.78 billion were traded. Decliners led gainers by 1,085 to 97 respe...

Market Daily Report: FBM KLCI down amid tech sell-off as investors turn cautious on GE14 timing

KUALA LUMPUR (April 3): The FBM KLCI fell 7.57 points or 0.4% mainly on last-minute selling of Tenaga Nasional Bhd shares and as investors turned cautious on Malaysia's 14th general election (GE14) timing. Bursa Malaysia's technology and small cap indices dropped by a larger quantum. At 5pm, the KLCI closed at 1,850.78 while Tenaga shares fell 34 sen to RM15.86. Bursa Malaysia's technology and small cap indices dropped 3.96% and 1.51% respectively. Hong Leong Investment Bank Bhd head of retail research Loui Low told theedgemarkets.com that the weaker market sentiment is due to concerns on the timing of the Malaysian Parliament's dissolution. “Hence, people are slightly more prudent, that’s why they are not getting exposed further into the stock market,” After the GE14, we should see more trading momentum interest from that point onwards,” Low said. Across Bursa Malaysia today, 1.89 billion shares worth RM1.9 billion were traded. Decliner...