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): Bursa Malaysia snapped a four-day losing streak to end higher on Wednesday (May 25), supported by buying demand for selected financial services and plantation counters amid cautious sentiment on regional bourses, dealers said.
Public Bank Bhd and IOI Corp Bhd were the top two gainers, rising five sen to RM4.55 and 12 sen to RM4.24 respectively, and contributing a total of 2.97 points to the FBM KLCI's gains.
At 5pm, the benchmark index closed 4.26 points, or 0.28%, higher at 1,535.56, from Tuesday’s close at 1,531.30, after hovering between 1,531.22 and 1,538.82 throughout the day.
The KLCI opened 0.47 of a point higher at 1,531.77.
However, market breadth was negative with decliners outpacing advancers 586 to 310, while 437 counters were unchanged, 976 untraded and 24 others suspended.
Total turnover fell to 2.34 billion units worth RM1.8 billion from 3.6 billion units worth RM2.09 billion on Tuesday.
Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said regional markets showed a mixed trend as market sentiment was impacted by US central bankers backing two more big interest rate hikes as early as in June and July to fight 40-year-high inflation, while investors were taking wait-and-see approach to assess the real impact.
“On the domestic front, the KLCI saw some bargain-hunting. However, buying interest was still weak amid the global uncertainty and increased market risks. We expect investor sentiment to remain jittery. Nonetheless, we reckon accumulation of stocks to persist on dips.
“Hence, we foresee the KLCI remaining in consolidation mode and hovering within the 1,525-1,545 range for the remainder of the week. Technically speaking, we spot the immediate support at 1,520 and resistance at 1,560,” he told Bernama.
Regionally, Singapore’s Straits Times Index fell 0.16% to 3,189.81, Japan’s Nikkei 225 slipped 0.26% to 26,677.80, Hong Kong’s Hang Seng advanced 0.29% to 20,171.27, South Korea’s KOSPI increased 0.44% to 2,617.22 and China's SSE Composite Index gained 1.19% to 3,107.46.
Among the heavyweights, Malayan Banking Bhd (Maybank) and CIMB Group Holdings Bhd were flat at RM8.96 and RM4.95 respectively, whereas Tenaga Nasional Bhd (TNB) improved five sen to RM9.19 and Petronas Chemicals Group Bhd fell three sen to RM9.93.
Of the actives, Cypark Resources Bhd dropped 12 sen to 38 sen and Hibiscus Petroleum Bhd slipped six sen to RM1.37, while MNC Wireless Bhd and Serba Dinamik Holdings Bhd were unchanged at 1.5 sen and 10 sen respectively.
On the index board, the FBM ACE decreased 0.52 of a point to 5,190.92, the FBM Emas Shariah Index dipped 18.04 points to 11,332.92, the FBM Emas Index eased 0.83 of a point to 10,949.45, the FBMT 100 Index added 11.01 points to 10,633.15 and the FBM 70 trimmed 62.09 points to 13,019.48.
Sector-wise, the Industrial Products and Services Index was 1.14 point lower at 197.46, the Plantation Index went up 73.31 points to 8,068.24 and the Financial Services Index increased 21.16 points to 16,495.73.
Main Market volume decreased to 1.6 billion shares worth RM1.65 billion from 2.31 billion shares worth RM1.85 billion on Tuesday.
Warrant turnover increased to 290.37 million units valued at RM59.9 million versus 372.8 million units valued at RM74.44 million previously.
ACE Market volume shrank by half to 454.77 million shares worth RM98.44 million from 912.11 million shares worth RM168.8 million a day ago.
Consumer products and services counters accounted for 205.42 million shares traded on the Main Market, followed by industrial products and services (420.25 million), construction (80.37 million), technology (124.26 million), special purpose acquisition companies (nil), financial services (49.2 million), property (157.64 million), plantation (38.52 million), real estate investment trusts (5.54 million), closed/funds (nil), energy (404.5 million), healthcare (30.3 million), telecommunications and media (42.92 million), transportation and logistics (29.43 million), and utilities (13.58 million).
Source: The Edge
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