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 23): Bursa Malaysia erased earlier gains to close in the negative territory on monday (May 23), driven by continued profit taking in selected plantation counters, amid mixed sentiment in the regional market, dealers said.
IOI Corp Bhd and Sime Darby Plantation Bhd lost 32 sen and 16 sen each to RM4.08 and RM5.02, respectively, contributing a total of 5.39 points to the loss in the composite index.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) declined 6.59 points or 0.43% to 1,542.53, from Friday’s close of 1,549.12, after hovering between 1,540.09 and 1,556.43 throughout the day.
The benchmark index, which opened 4.03 points higher at 1,553.15, remained in the positive territory for most part of the day, before turning red in the mid-afternoon session as mild profit taking emerged.Market breadth was negative with decliners outpacing advancers 546 to 355, while 598 counters were unchanged, 798 untraded, and 23 others suspended.
Total turnover rose to 3.41 billion units worth RM1.88 billion from 2.39 billion units worth RM1.99 billion last Friday.
Rakuten Trade Sdn Bhd vice president of equity research Thong Pak Leng said the key regional indices were mixed as worries about inflation and rising interest rates continued to dampen sentiment, while selling in technology stocks weighed on the Chinese markets.
“Investors continue to assess the economic growth outlook for the world’s largest economies and whether the recent sell-off will carry on. Back home, we believe the market undertone will remain cautious amid the volatile regional performance although bargain hunting may prevail.
“As such, we anticipate the FBM KLCI to continue to move sideways within the 1,545-1,565 range for the week. Technically, we see the immediate resistance at 1,570 and support at 1,540,” he told Bernama on Monday.
Regionally, Singapore’s Straits Times Index fell 0.83% to 3,213.65, Japan’s Nikkei 225 rose 0.98% to 27,001.52, Hong Kong’s Hang Seng slipped 1.19% to 20,470.06, South Korea’s Kospi increased 0.31% to 2,647.38, while China's SSE Composite Index improved 0.01% to 3,146.86 and Shenzhen Component Index dipped 0.06% to 11,447.95.
Among local heavyweights, Malayan Banking Bhd, Public Bank Bhd and IHH Healthcare Bhd added two sen each to RM8.98, RM4.54 and RM6.55, respectively, Petronas Chemicals Group Bhd was flat at RM9.99, and Tenaga Nasional Bhd fell four sen to RM9.20.
Of the actives, Sapura Energy Bhd advanced 1.5 sen to 8.5 sen, MQ Technology Bhd perked up half-a-sen to six sen, Serba Dinamik Holdings Bhd shed 2.5 sen to 11 sen, KNM Group Bhd eased half-a-sen to 19.5 sen, while Techna-X Bhd was flat at 5.5 sen.
On the index board, the FBM ACE decreased 67.01 points to 5,276.08, the FBM Emas Shariah Index slipped 64.7 points to 11,464.57, the FBM Emas Index lost 28.79 points to 11,042.58, the FBMT 100 Index reduced 30.11 points to 10,704.96, and the FBM 70 added 26.72 points to 13,203.74.
Sector-wise, the Industrial Products and Services Index was 0.21 of-a-point higher at 199.58, the Plantation Index dropped 216.69 points to 8,041.11, while the Financial Services Index fell 6.75 points to 16,554.95.
Main Market volume rose to 2.61 billion shares worth RM1.71 billion from 1.67 billion shares worth RM1.8 billion on Friday.
Warrants turnover decreased to 345.56 million units worth RM66.01 million versus 353.44 million units valued at RM75.96 million previously.
ACE Market volume increased to 451.9 million shares worth RM107.71 million from 369.93 million shares worth RM108.32 million last Friday.
Consumer products and services counters accounted for 207.97 million shares traded on the Main Market, industrial products and services (369.08 million), construction (50.71 million), technology (122.06 million), SPAC (nil), financial services (47.55 million), property (161.27 million), plantation (49.11 million), REITs (11.57 million), closed/fund (12,000), energy (1.43 billion), healthcare (64.01 million), telecommunications and media (40.62 million), transportation and logistics (24.8 million), and utilities (26.1 million).
Source: The Edge
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