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: KLCI falls as heavyweights succumb to selling pressure just as KL, Johor Bahru also hit by MCO 3.0
KUALA LUMPUR (May 5): The FBM KLCI extended losses for the fourth consecutive session today, as most of the key index's components succumbed to selling pressure amid news of the reimplementation of the Movement Control Order or MCO 3.0 in parts of Selangor tomorrow. And just as market closed, the movement restriction was expanded to include Johor Bahru as well as Kuala Lumpur, starting Friday, after rumours went around earlier today that the capital city would not be spared given rising new Covid-19 cases.
At 5pm, the local benchmark index closed 12.58 points or 0.79% lower at 1,575.67.
At a glance, except for Telekom Malaysia Bhd, all other 29 KLCI components were in the red, with the largest declines seen in Supermax Corp Bhd, Top Glove Corp Bhd and Hartalega Holdings Bhd.
Supermax sank 25 sen or 4.3% to RM5.57, while Hartalega closed 10 sen or 1.01% lower at RM9.83.
Top Glove shares, which was reported to have a shipment of 3.97 million nitrile disposable gloves worth US$518,000 (RM2.13 million) made by a unit seized by the US Customs in Cleveland earlier today over forced labour claims, sank as much as 2.5% or 14 sen to RM5.31, before settling at RM5.32.
Market breadth was negative as losers surpassed gainers, at 810 vs 297 gainers, while 419 counters were unchanged. Some 7.37 billion shares worth RM4.17 billion crossed today.
Rakuten Trade head of equity sales Vincent Lau told theedgemarkets.com that there is persistent selling pressure on the KLCI, as investor sentiment has been hit by news of the MCO 3.0, given the rising number of new Covid-19 cases recently. From six out of nine districts in Selangor being hit by the MCO 3.0 today, Senior Minister (Defence) Datuk Seri Ismail Sabri Yaakob announced today that the capital city and Johor Bahru will also be placed under MCO from May 7 to 20.
“The local bourse also took cue from the mixed regional performance, after the Wall Street sank overnight,” he added. Seoul's Kospi rose 0.64%, while Hong Kong’s Hang Seng fell 0.49%.
All but two of Bursa Malaysia's sub-indices closed lower, with the transportation and logistics sector being the worst hit, as it fell 1.94% to 935.12. This was followed by the FBM ACE index, which slipped 1.83% to 8,469.94; the Healthcare index also dropped 1.75% to 3,206.46, while the Technology Index lost 1.32% to close at 82.2.
In contrast, Bursa’ Energy Index rose 1.14% to 907.89. The Telecommunication and Media Index was steady, closing 0.01 points higher at 715.42.
Notable losers included Fraser & Neave Holdings Bhd, Kuala Lumpur Kepong Bhd, Vitrox Corp Bhd, Careplus Group Bhd, Supermax, Unisem (M) Bhd and Adventa Bhd.
Dataprep Holdings Bhd, which hit limit up after jumping 30% or 45 sen to RM1.95, emerged as the top gainer by value on the local bourse.
Transocean Holdings Bhd, LPI Capital Bhd, Malaysian Pacific Industries Bhd (MPI), British American Tobacco (Malaysia) Bhd, Widetech (M) Bhd and PMB Technology Bhd were among top gainers by value.
Among actives were Focus Dynamics Group Bhd, Sedania Innovator Bhd, Dagang NeXchange Bhd, KTG Bhd, Lion Industries Bhd and Velesto Energy Bhd.
Source: The Edge
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