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 26): Bursa Malaysia extended Wednesday's gains to end higher on Thursday (May 26), supported by buying demand for selected industrial products and services as well as telecommunications and media counters amid cautious sentiment on regional bourses, dealers said.
Press Metal Aluminium Holdings Bhd and Telekom Malaysia Bhd (TM) were the top two gainers, putting on 14 sen to RM5.44 and 26 sen to RM4.97 respectively, and contributed a total of 3.68 points to the gains in the FBM KLCI.
At 5pm, the benchmark index settled 5.59 points, or 0.36%, higher at 1,541.15, from Wednesday’s close at 1,535.56, after moving between 1,535.89 and 1,541.75 throughout the day.
The KLCI opened 4.16 points higher at 1,539.72.However, market breadth was negative with decliners outpacing advancers 557 to 406, while 364 counters were unchanged, 986 untraded and 31 others suspended.
Total turnover rose to 2.89 billion units worth RM1.92 billion from 2.34 billion units worth RM1.8 billion on Wednesday.
Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said the KLCI moved higher as investors continued to bargain-hunt for stocks at reduced levels after the recent heavy selldown.
“Regionally, the key indices closed mixed as investors remained wary of the economic impact of China’s ongoing Covid-19 lockdowns. Meanwhile, the Bank of Korea’s announcement of a 25-basis point increase in its base rate to 1.75% would add some pressure on equities' valuations.
“As for the local bourse, we believe the market was oversold [earlier]. However, we advise investors to stay alert to increasing market volatility and external uncertainties. We anticipate the benchmark index to remain sideways within the range of 1,535-1,545 towards the weekend, with immediate support at 1,520 and resistance at 1,560,” he told Bernama on Thursday.
Regionally, Singapore’s Straits Times Index added 0.93% to 3,209.28, Japan’s Nikkei 225 slipped 0.27% to 26,604.84, Hong Kong’s Hang Seng declined 0.27% to 20,116.20, South Korea’s KOSPI decreased 0.18% to 2,612.45 and China's SSE Composite Index gained 0.5% to 3,123.11.
Back home, heavyweights Malayan Banking Bhd (Maybank) and Tenaga Nasional Bhd (TNB) added two sen each to RM8.96 and RM9.21 respectively, Public Bank Bhd advanced five sen to RM4.60, IHH Healthcare Bhd went up six sen to RM6.49, while Petronas Chemicals Group Bhd slipped six sen to RM9.87.
Of the actives, Serba Dinamik Holdings Bhd and Cypark Resources Bhd increased 1.5 sen each to 11.5 sen and 39.5 sen respectively, Cnergenz Bhd rose 10.5 sen to 67.5 sen, while Sapura Energy Bhd declined one sen to 7.5 sen.
On the index board, the FBM ACE increased 15.06 points to 5,205.98, the FBM Emas Shariah Index went up 20.90 points to 11,353.82, the FBM Emas Index improved 35.09 points to 10,984.54, the FBMT 100 Index climbed 42.66 points to 10,675.81 and the FBM 70 put on 68.52 points to 13,088.
Sector-wise, the Industrial Products and Services Index was 0.88 of a point higher at 198.34, the Plantation Index slid 79.55 points to 7,988.69 and the Financial Services Index rose 94.18 points to 16,589.91.
Main Market volume increased to 1.86 billion shares worth RM1.72 billion from 1.6 billion shares worth RM1.65 billion on Wednesday.
Warrant turnover swelled to 379.61 million units valued at RM74.24 million versus 290.37 million units valued at RM59.9 million previously.
ACE Market volume expanded to 649.14 million shares worth RM181.37 million from 454.77 million shares worth RM98.44 million.
Consumer products and services counters accounted for 308.93 million shares traded on the Main Market, followed by industrial products and services (474.44 million), construction (46.75 million), technology (131.89 million), special purpose acquisition companies (nil), financial services (49 million), property (157.17 million), plantation (49.59 million), real estate investment trusts (14.80 million), closed/funds (100), energy (471.82 million), healthcare (58.86 million), telecommunications and media (44.34 million), transportation and logistics (35.42 million), and utilities (19.89 million).
Source: The Edge
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