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 (May 25): The FBM KLCI extended its relief rally today with investor sentiment boosted by overnight gains on Wall Street, but trading was mostly range-bound except for some late bargain-hunting in selected index-linked stocks.
The benchmark recovered from its intraday low of 1,567.37 in the morning session, before settling at its intraday high of 1,577.82 for a gain of six points or 0.38% from yesterday’s close of 1,571.82.
Top gainers among index-linked stocks included Sime Darby Bhd and Dialog Group Bhd, which rose 3.64% and 2.43% respectively.
Across Bursa Malaysia, 6.34 billion shares worth RM3.82 billion were traded. The market breadth was mixed with 582 gainers versus 464 decliners, while 413 counters were unchanged.
Malacca Securities Sdn Bhd senior analyst Kenneth Leong said the benchmark index ended higher on the back of bargain hunting following the sell-off last week.
“Stronger crude oil prices also helped to lift the market sentiment with Petronas heavyweight stocks traded higher today,” he told The Edge.
Petronas Chemicals Group Bhd rose 1.01% to RM8, Petronas Gas Bhd advanced 0.76% to RM15.98, and Petronas Dagangan Bhd added 0.11% to RM18.82.
Reuters reported that oil prices were steady today, holding around one-week highs after jumping more than 3% the previous session as investors tempered expectations of an early return of oil exporter Iran to international crude markets.
Bursa Malaysia’s Energy Index rose the most in percentage terms among the exchange's gauges, closing up 1% to 864.26.
The Healthcare Index, which includes glove counters, was the top loser, closing down 0.54% to 3,129.95.
Top Glove Corp Bhd, Hartalega Holdings Bhd and Supermax Corp Bhd also closed lower.
Notable losers were Nestle (M) Bhd, BLD Plantation Bhd, Greatech Technology Bhd, Kumpulan H&L High Tech Bhd, UWC Bhd and Paragon Union Bhd.
Gainers included Malaysian Pacific Industries Bhd, Carlsberg Brewery (M) Bhd, Widetech (M) Bhd, British American Tobacco (Malaysia) Bhd, Hong Leong Financial Group Bhd, Sedania Innovator Bhd, Heineken (M) Bhd and KESM Industries Bhd,
The most actively traded stocks were Progressive Impact Corp Bhd, Privasia Technology Bhd, Kanger International Bhd, Sasbadi Holdings Bhd, UCrest Bhd, Dagang NeXchange Bhd, Minda Global Bhd, LKL International Bhd and mTouche Technology Bhd.
Asian shares advanced today, tracking a rally on Wall Street, while the US dollar held near a four-month low as inflation worries faded after Federal Reserve officials allayed fears about monetary policy tightening, Reuters reported.
Japan's Nikkei 225 rose 0.67%, South Korea's Kospi advanced 0.86%, Hong Kong’s Hang Seng Index jumped 1.75% and the Shanghai Stock Exchange Composite Index closed up 2.4%.
Source: The Edge
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