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 19): Bursa Malaysia snapped a three-day winning streak to end in the red on Thursday (May 19), dragged by selling in selected heavyweights led by Press Metal Aluminium Holdings Bhd and Public Bank Bhd.
Press Metal gave up 20 sen to RM5.08 and Public Bank fell four sen to RM4.57, with both stocks contributing a combined 4.203 points to the loss in the composite index.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) dropped 5.5 points or 0.35% to 1,549.41 from Wednesday's close of 1,554.91.
The benchmark index, which opened 4.67 points easier at 1,550.24, moved between 1,545.02 and 1,554.53 throughout the day.Market breadth was negative with decliners outnumbering advancers 692 to 272, while 380 counters were unchanged, 925 untraded, and 22 others suspended.
Total turnover dwindled to 2.69 billion units worth RM2.23 billion from 3.74 billion units worth RM2.25 billion on Wednesday.
Rakuten Trade Sdn Bhd vice president of equity research Thong Pak Leng said Bursa Malaysia closed broadly lower due to heavy selling pressure across the region.
"Regionally, key indices were mostly lower, save for the Chinese market, following a steep selldown on Wall Street as investors worry about high inflation and a possible economic recession in the United States (US).
"The US consumer price index rose 8.3% in April from a year earlier, continuing the trend of high inflation rates over recent months, while the prolonged Ukraine-Russia war has accelerated surging prices of energy and grains which will have negative impact on the global economy," he told Bernama.
Singapore’s Straits Times fell 0.95% to 3,194.66, Japan’s Nikkei 225 shed 1.89% to 26,402.84, Hong Kong’s Hang Seng slid 2.54% to 20,120.68, South Korea’s Kospi decreased 1.28% to 2,592.34, while China's SSE Composite Index rose 0.36% to 3,096,96.
As for the local bourse, Thong said the benchmark index remained well supported around the 1,545-1,550 level despite drastic movement in regional indices and Wall Street.
"We reckon the short-term market sentiment will remain jittery amid the weak regional performance although bargain hunting may prevail.
"We anticipate the benchmark index to trend sideways, within the range of 1,545-1,555 towards the weekend, with immediate support at 1,540 and resistance at 1,570," he added.
Among the heavyweights, Malayan Banking Bhd fell one sen to RM8.98, Public Bank Bhd dipped four sen to RM4.57, CIMB Group Holdings Bhd eased three sen to RM5.04, while Petronas Chemicals Group Bhd rose four sen to RM10.02, and IHH Healthcare Bhd improved 12 sen to RM6.58.
Of the actives, Serba Dinamik Holdings Bhd decreased 1.5 sen to 14.5 sen and Sapura Energy Bhd fell one sen to 6.5 sen, while Techna-X Bhd and MNC Wireless Bhd gained half-a-sen each to 5.5 sen and 2.5 sen, respectively, and Country Heights Holdings Bhd was flat at 83.5 sen.
Among the top losers, Malaysian Pacific Industries Bhd slipped 82 sen to RM30.80, Dutch Lady Milk Industries Bhd lost 48 sen to RM33.52, Sarawak Oil Palms Bhd slid 33 sen to RM5.72, Berjaya Food Bhd gave up 27 sen to RM4.30, and Petronas Dagangan Bhd declined 26 sen to RM21.26.
On the index board, the FBM ACE fell 34.2 points to 5,288.17, the FBM Emas Shariah Index dropped 72.16 points to 11,470.72, the FBM Emas Index slid 54.34 points to 11,046.27, the FBMT 100 Index fell 46.38 points to 10,721.33, and the FBM 70 lost 90.76 points to 13,095.87.
Sector-wise, the Industrial Products and Services Index was 1.89 points lower at 197.09 and the Financial Services Index dropped 73.2 points to 16,593.71, but the Plantation Index increased 14.57 points to 8,237.33.
Main Market volume shrank to 1.89 billion shares worth RM2.05 billion from 2.79 billion shares worth RM2.06 billion on Wednesday.
Warrants turnover improved to 383.38 million units valued at RM75.23 million versus 300.87 million units valued at RM55.87 million on Wednesday.
ACE Market volume decreased to 418.24 million shares worth RM105.4 million from 642.73 million shares worth RM138.67 million previously.
Consumer products and services counters accounted for 295.08 million shares traded on the Main Market, industrial products and services (276.54 million), construction (59.03 million), technology (143.68 million), SPAC (nil), financial services (63.26 million), property (188.69 million), plantation (50.6 million), REITs (17.85 million), closed/fund (2,000), energy (655.72 million), healthcare (52.92 million), telecommunications and media (28.55 million), transportation and logistics (30.59 million), and utilities (24.46 million).
Source: The Edge
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