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 27): Bursa Malaysia closed broadly higher on Monday (June 27) on persistent buying interest mainly in technology and energy stocks, said an analyst.
At 5pm, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) rose 1.42 points to 1,438.12 from Friday's close of 1,436.7.
The benchmark index, which opened 2.12 points higher at 1,438.82, fluctuated between 1,431.65 and 1,441.03 throughout the trading session.
On the broader market, gainers beat losers 546 to 365, while 393 counters were unchanged, 1,004 untraded, and 55 others suspended.Total turnover expanded to 2.65 billion units worth RM1.43 billion from 2.46 billion units worth RM1.47 billion on Friday.
Key regional markets also continued to trend higher following positive cues on Wall Street including the upbeat performance of the tech-heavy Nasdaq Composite last Friday.
Rakuten Trade Sdn Bhd vice president of equity research Thong Pak Leng said the FBM KLCI, which ended 0.1% higher, was supported by improved investors’ sentiment amid the strengths of regional currencies against the US dollar.
“As for the local bourse, we are cautiously optimistic about performance of the FBM KLCI in the near term, amid the improvement in regional sentiment while valuation of local equities remain attractive as compared with its regional peers.
“Nonetheless, investors should be wary of both regional and global volatility which remains high,” he told Bernama.
The online equity broker anticipates the FBM KLCI to move wider within the 1,430-1,460 range for remaining week, with immediate support at 1,430 and resistance at 1,490.
Meanwhile, after a torrid time in June, which saw the FBM KLCI slip 8.5% month-to-date, Kenanga Research in its Weekly Technical Review said for the second half of the year, investors may want to exercise prudence given the historical pattern.
Statistically, it said the key market barometer had ended in the red in July in six of the last 10 years, including the most recent year, posting an average monthly return of +1% since 2012.
“For the coming week, investors may look forward to a mixture of macro data releases and corporate news flows.
“On Thursday, there will be the May banking statistics publication and the outcome of the Organisation of the Petroleum Exporting Countries (OPEC) meeting. And this Friday, the Malaysia Manufacturing Purchasing Managers Index (PMI) report will be out,” it said.
Among Bursa Malaysia heavyweights, Hong Leong Bank Bhd rose 32 sen to RM20.48, Sime Darby Plantation Bhd improved eight sen to RM4.30, MISC Bhd was 12 sen higher at RM7.06, IHH Healthcare Bhd was six sen better at RM6.48 and MR DIY Group (M) Bhd added three sen to RM2.
Malayan Banking Bhd, meanwhile, declined two sen to RM8.58, Petronas Chemicals Group Bhd lost five sen to RM9.20, but Public Bank Bhd added one sen to RM4.44.
Of the actives, Green Packet Bhd was flat at 6.5 sen, Reach Energy Bhd fell half-a-sen to eight sen, Dagang NeXchange Bhd rose three sen to 79.5 sen, Sapura Energy Bhd was flat at 4.5 sen, and Nylex (M) Bhd bagged 5.5 sen to 29.5 sen.
On the index board, the FBM Emas Index was 28.93 points firmer at 10,286.32, FBM 70 gained 80.39 points to 12,524.55, FBM Emas Shariah Index climbed 40.9 points to 10,455.54, FBMT100 Index increased 22.85 points to 10,021.03, and the FBM ACE perked up 61.76 points to 4,831.65.
Sector-wise, the Financial Services Index rose 50.68 points to 16,015.13, the Plantation Index was 5.13 points better at 6,922.86, but the Industrial Products and Services Index eased 0.49 of-a-point to 182.88.
Main Market volume widened to 1.64 billion shares worth RM1.19 billion from 1.35 billion shares valued at RM1.46 billion on Friday.
Warrants turnover expanded to 592.57 million units valued at RM108.71 million against 507.65 million units worth RM117.54 million previously.
ACE Market volume increased to 414.6 million shares worth RM141.01 million versus 399.79 million shares worth RM112.33 million on Friday.
Consumer products and services counters accounted for 208.5 million shares traded on the Main Market, industrial products and services (413.92 million), construction (47.18 million), technology (177.84 million), SPAC (nil), financial services (37.38 million), property (108.19 million), plantation (25.26 million), REITs (7.52 million), closed/fund (1,000), energy (295.53 million), healthcare (57.37 million), telecommunications and media (233.73 million), transportation and logistics (24.26 million), and utilities (13.19 million).
Source: The Edge
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