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 (June 11): The FBM KLCI continued to post a decline today, with the benchmark index falling 0.3% or 4.74 points to close at 1,575.16.
Rakuten Trade head of equity sales Vincent Lau noted that the KLCI's performance was in line with regional markets.
He also noted that many investors had reduced their exposure ahead of the weekend, as well as due to concerns over the country’s Covid-19 daily case numbers coming up again.
“That said, cases are expected to come down with the ramp-up in the government’s vaccination efforts,” he said.The top decliners among the index’s constituents were Supermax Corp Bhd, Sime Darby Plantation Bhd and Hap Seng Consolidated Bhd.
Of the 30 component stocks currently on the index, 18 counters posted declines, 10 posted gains and two were unchanged.
Broader market sentiment was mostly negative, with 533 counters posting declines, versus the 476 that were unchanged and 441 that posted gains.
The top active stocks on the local bourse today were Dagang NeXchange Bhd (DNeX), Avillion Bhd and Serba Dinamik Holdings Bhd.
As for top value gainers, the list was led by Malaysian Pacific Industries Bhd (MPI), Nestlé (Malaysia) Bhd and Transocean Holdings Bhd.
As for top value losers, CI Holdings Bhd, Kuala Lumpur Kepong Bhd (KLK) and Pecca Group Bhd were at the top of the list.
TA Securities Research said in a note today that stocks were likely to extend sideways trade ahead of the weekend, pending less ambiguity over local political developments with the Agong due to meet the Conference of Rulers next week, most probably over a decision to extend emergency measures or more concerted efforts to contain the worsening domestic Covid-19 pandemic.
“Immediate index support remains at last Monday's low of 1,568, followed by the recent pivot low of 1,552, with better support [levels] seen at 1,540 and 1,520.
"Initial profit-taking resistance stays at 1,600, with stronger resistance levels expected at the recent highs of 1,623, 1,635 and 1,642,” it noted.
On the domestic front, Malaysia saw its Industrial Production Index (IPI) in April jumped by 50.1% year-on-year (y-o-y) on the back of strong manufacturing.
The sharp increase was driven by increases among all indices. The manufacturing index increased by 68% y-o-y, the electricity index was up 22.9%, and the mining index was up 14.3%.
When contrasted to regional markets, the performance of the KLCI did not stand out against the mixed performance seen regionally.
In China, Hong Kong's Hang Seng Index was 0.36% or 103.25 points higher at 28,842.13 points. However, its fellow index in Shanghai, namely the Shanghai Composite, was down 0.58% or 21.11 points lower at 3,589.75.
Japan’s Nikkei 225 was somewhat flattish, declining by 0.03% or 9.83 points to 28,948.73. Across the causeway, the Straits Times Index dropped 0.17% or 5.53 points to 3,156.97.
According to Reuters, stock markets in the region largely gained.
“South Korea led the way with a 0.8% rise, while Thailand, the Philippines and others rose no more than half a per cent,” it noted.
Source: The Edge
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