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 25): The FBM KLCI ended 0.255% higher today, in line with regional bourses, which tracked Wall Street gains on US President Joe Biden's infrastructure deal.
The gains, however, were capped by cautious sentiment on the potential extension of the full movement control order (FMCO) amid high daily new Covid-19 cases.
The benchmark index pared its earlier gains to close 3.97 points higher at 1,559.68. It earlier rose to an intraday high of 1,563.47 points.
Rakuten Trade Research vice-president Thong Pak Leng said the market was flattish today as it lacked fresh catalysts.
“As the number of Covid-19 cases was still quite high, investors were worried about the [possible] extension of the FMCO,” he told theedgemarkets.com.
The market movement next week, according to him, will depend on the government’s decision on the FMCO.
“If the FMCO is lifted, we may see some bargain hunting on stocks with strong fundamentals,” he said.
Meanwhile, Hong Leong Investment Bank (HLIB) Research analyst Ng Jun Sheng said in a note earlier today that although the overnight Wall Street rally may provide a boost to Bursa Malaysia, multiple domestic headwinds could limit the gains (support levels at 1,533, 1,545 and 1,552; resistance levels at 1,577, 1,588 and 1,600) as investors weigh the domestic fluid politics and the potential extension of the FMCO amid unabated Covid-19 cases.
“Nevertheless, acceleration of the nationwide vaccination programme, expectations of more stimulus measures from the government and potential mid-year window-dressing activities could cushion further slide,”’ he added.
Across Bursa, 5.41 billion securities were traded for RM2.56 billion today, compared with 5.21 billion securities worth RM3.03 billion yesterday.
Losers led gainers by 657 to 344, while 441 counters closed unchanged.
Petronas Dagangan Bhd (PetDag) was the top gainer, rising 66 sen or 3.48% to RM19.60. This was followed by Fraser & Neave Holdings Bhd (F&N), which grew 36 sen or 1.37% to RM26.66, and Nestlé (Malaysia) Bhd that gained 20 sen or 0.15% to RM133.70.
Conversely, OM Holdings Ltd was the top loser, falling 53 sen or 13.15% to RM3.50. This was followed by Malaysian Pacific Industries Bhd (MPI), which dropped by 42 sen or 1.08% to RM38.50, and Cycle & Carriage Bintang Bhd that slipped 40 sen or 13.25% to RM2.62.
MMAG Holdings Bhd was the most actively traded stock. The counter, which saw 488.43 million shares transacted, slid two sen or 12.12% to 14.5 sen.
Most Asian bourses were in the green today, boosted by the US overnight rally.
South Korean shares ended at a record high with the KOSPI closing up 0.51% at 3,302.84, while Japanese shares also finished higher with the Nikkei Stock Average rising 0.66% to 29,066.18.
China’s Shanghai Composite Index, meanwhile, ended 1.15% higher at 3,607.56.
Source: The Edge
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