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 2): The FBM KLCI closed higher by 0.17% or 2.73 points as investors engaged in stock-picking amid sector rotational play, while the positive sentiment generated from Wall Street’s overnight surge has also spilt over to the local market.
At 5pm, the benchmark index closed at 1,569.87 points. Today, the index had only been trading in the positive territory throughout the trading session, ranging between 1,568.67 and 1,583.43.
Among the 30 FBM KLCI constituents, 18 stocks were higher, nine were lower while three traded flat. Gains were led by IHH Healthcare Bhd, which jumped 21 sen or 3.97% to RM5.50, followed by Dialog Group Bhd and MISC Bhd.
Index-linked banking stocks also contributed to the KLCI's positive performance today, with Hong Leong Financial Group Bhd (HLFG), CIMB Group Holdings Bhd, Public Bank Bhd, RHB Bank Bhd and Malayan Banking Bhd all closing in positive territory.In contrast, glove heavyweights Supermax Corp Bhd and Top Glove Corp Bhd were among the biggest losers of the KLCI component stocks following the latest news on the Covid-19 vaccines.
Areca Capital Sdn Bhd CEO Danny Wong Teck Meng told theedgemarkets.com the market liquidity has yet to taper and there will be further rotational play and buying of selective counters in recovery-themed stocks such as bank counters, lifting the performance of the benchmark index.
Meanwhile, Rakuten Trade Sdn Bhd reported that Wall Street rebounded sharply following days of decline amid the uncertainty on rates. Buyers returned in force amid vaccine optimism and the impending reopening of the economy. The Dow Jones Industrial Average soared 600 points to close above the 31,500 mark again.
On the local front, Rakuten Trade commented: “Though we expect a broader based buying today, the FBM KLCI performance may be negated by the continuous sell-down on glove companies.”
"Therefore, the research house foresees the benchmark index to trend within the 1,575/80 range today as bargain-hunting activities should emerge after yesterday’s dismal showing," it added.
Trading volume was 12.89 billion shares, 21% higher compared to 10.69 billion shares traded yesterday. Meanwhile total trade value stood at RM6.42 billion today.
The market breadth was mixed with 672 decliners compared to 484 gainers, while 472 closed unchanged.
The top gainers by value was led by Fraser and Neave Holdings Bhd, which rose 92 sen or 3.07% to RM30.88. It was followed by Malaysian Pacific Industries Bhd, Nestle (M) Bhd, ViTrox Corp Bhd, Hong Leong Industries Bhd and HLFG.
Meanwhile, the top losers by value were Kobay Technology Bhd, Heineken Malaysia Bhd, Muda Holdings Bhd, Mega First Corp Bhd, Kuala Lumpur Kepong Bhd, Supermax and Pharmaniaga Bhd.
Of the actives, Aimflex Bhd (previously known as i-Stone Group Bhd) topped the list. It added six sen or 23.53% to 31.5 sen after 589.42 million shares were traded. Others included Straits Inter Logistics Bhd, GFM Service Bhd, Gran-flo Bhd and AirAsia X Bhd.
Bloomberg reported that most Asian stocks slipped Tuesday along with US and European equity futures as investors weighed the impact of the recent climb in bond yields and a Chinese official’s warning about asset bubbles.
Across Asia, Japan's Nikkei 225 fell 0.86% while South Korea's Kospi gained 1.03%. In China, Hong Kong’s Hang Seng dropped 1.21% while the Shanghai Stock Exchange Composite Index closed down 1.21%.
Source: The Edge
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