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...
KUALA LUMPUR (March 8): The FBM KLCI closed 0.73% or 11.69 points higher today, driven by gains seen in Petronas Chemicals Group Bhd (PetChem), Genting Malaysia Bhd (GenM) and Axiata Group Bhd.
The benchmark index rose to 1,611.81 points at the closing bell.
PetChem was among the top gainers today, rising by 6.78% or 53 sen to RM8.35, with a market value of RM66.8 billion. Meanwhile, shares in GenM closed 4.05% or 12 sen higher at RM3.08, valuing it at RM18.29 billion with Axiata finishing the trading day 4.08% or 14 sen higher at RM3.57, translating into a market valuation of RM32.74 billion.
In a note today, TA Securities Research said the technical trend and momentum indicators for the FBM KLCI have improved significantly following last week’s rebound.
“With economic recovery plays gaining traction on reopening optimism, sectors deemed to benefit most from reopening of the domestic economy such as banking, gaming, property, oil and gas, and transportation should continue to perform well.
“On the index, further strength above immediate overhead resistance from the 50-day moving average at 1,600 will aid upside to tougher hurdles coming from 1,620, 1,640 and 1,660. Key chart supports will be the 100-day and 200-day moving averages at 1,584 and 1,557, respectively, with 1,521, the 23.6% Fibonacci Retracement (FR) of the 1,207 to 1,618 upswing, acting as a stronger support platform,” TA Securities Research noted.
In terms of stock picks for this week, the research house said gaming, telco, oil and gas, and property-related stocks such as Genting Bhd, GenM, Maxis, Hibiscus Petroleum Bhd, Malaysian Resources Corp Bhd, UEM Sunrise Bhd and Velesto Energy Bhd should be able to attract bargain hunters looking for rotation into economic recovery play.
On the broader market, a total of 9.8 billion shares worth RM6.28 billion were traded on the local bourse today.
The most actively traded counters on Bursa Malaysia were Dagang NeXchange Bhd, Sapura Energy Bhd and Sealink International Bhd. In terms of top value gainers, Heineken Malaysia Bhd, Carlsberg Brewery Malaysia Bhd and PetChem were in the top three. Conversely, selldowns in tech stocks meant that Malaysian Pacific Industries Bhd, ViTrox Corp Bhd and UWC Bhd were at the top of the top value losers list today.
From an overall index perspective, the Energy, Construction and Financial Services Indices were up today. The Energy Index specifically saw a 3.54% or 33.68 point gain to 985.19, following greater trading interest in oil and gas counters as prices of Brent crude breached US$70 a barrel.
The FBM KLCI’s performance stood in stark contrast to those of other regional markets. Japan's Nikkei 225, Hong Kong's Hang Seng and Shanghai Composite all posted declines. The Shanghai Composite was down 2.30% or 80.57 points at 3,421.41. Hang Seng finished 1.92% or 557.46 points lower at 28,540.83. Nikkei 225 was 0.42% or 121.07 points lower at 28,743.25.
Reuters reported that Asian shares broadly reversed course to trade lower today as higher oil prices raised inflation worries and offset optimism over the passage of a US$1.9 trillion stimulus bill in the US.
“Earlier on Monday, Asian shares were broadly higher after the mammoth US stimulus bill cleared the Senate over the weekend, boosting optimism about the global economic recovery.
“A spike in oil prices past US$70 for the first time since the pandemic, though, sparked some worries about inflation for energy-hungry Asia,” it noted.
Source: The Edge
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