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 (Aug 11): Bursa Malaysia rebounded from Wednesday's (Aug 10) losses to close broadly higher on Thursday, with the benchmark index breaching and staying above the 1,500-psychological level amid positive market sentiment across the region.
The FTSE Bursa Malaysia KLCI (FBM KLCI) rose 13.23 points to end the day at its intraday high of 1,505.56 compared with Wednesday's close of 1,492.33, driven by continuous buying momentum in selected index-linked counters led by Press Metal Aluminium Holdings Bhd.
The benchmark index opened 5.48 points better at 1,497.81 this morning and remained in positive territory throughout the session.
Banking stocks were mostly upbeat, including CIMB Group Holdings Bhd,
Malayan Banking Bhd (Maybank), Hong Leong Financial Group Bhd, Hong
Leong Bank Bhd, Public Bank Bhd, and RHB Bank Bhd following
slower-than-expected inflation data in the US which might provide some
space for the Federal Reserve not to hike rates aggressively.
The broader market was bullish as gainers overwhelmed losers 628 to 260, while 379 counters were unchanged, 1,016 untraded, and 12 others suspended.
Total turnover increased to 2.55 billion units worth RM1.97 billion from 2.17 billion units worth RM1.68 billion on Wednesday.
Rakuten Trade Sdn Bhd vice president of equity research Thong Pak Leng said the strong performance in Malaysian equities was in sync with regional bourses which were mostly higher following the positive cues from the overnight gains on Wall Street.
“As for the local bourse, we are cautiously optimistic given the improvement in the local market sentiment and foreign support.
“We expect the market uptrend to continue towards the weekend with the FBM KLCI hovering within the 1,500-1,515 region, with immediate resistance at 1,510 followed by 1,530, and support at 1,480,” he told Bernama.
Meanwhile, a dealer said risk appetite in the market was also fuelled by the anticipation of a bullish second-quarter (2Q) gross domestic product (GDP) growth, to be announced by Bank Negara Malaysia on Friday.
Analysts reckoned that Malaysia is likely to report a stronger GDP growth — at between 5.5% and 6.5% — in 2Q following a stronger-than-expected jump in the industrial production index in June 2022 of 12.1%.
Among heavyweights, two-thirds of the 30 index-linked counters recorded gains on Thursday led by Press Metal, which rose by 4.04% or 19 sen to RM4.89 with 12.17 million shares changing hands, making it the largest contributor to the rise in the composite index with 2.672 points.
Maybank gained four sen to RM8.94, Public Bank perked up two sen to RM4.65, and Petronas Chemicals Group Bhd rose six sen to RM8.78. IHH Healthcare Bhd, too, gained six sen RM6.48, while CIMB advanced seven sen to RM5.37, and Tenaga Nasional Bhd surged 1.78% or six sen to RM6.48.
Of the actives, Metronic Global Bhd stood at five sen, followed by G3 Global Bhd at three sen, as both counters slipped half-a-sen. SFP Tech Holdings Bhd bagged 19 sen to RM1.13, Fintec Global Bhd was flat at one sen, while Green Packet Bhd inched up half-a-sen to 5.5 sen.
On the index board, the FBM Emas Index was 121.3 points firmer at 10,683.04, the FBMT 100 Index surged 117.07 points to 10,431.23, the FBM Emas Shariah Index soared 140.81 points to 10,810.11, the FBM 70 jumped 245.85 points to 12,797.95, and the FBM ACE increased 117.47 points to 4,949.1.
Sector-wise, the Financial Services Index climbed 126.41 points to 16,776.02, the Energy Index improved 12.28 points to 658.92, the Industrial Products and Services Index went up 3.07 points to 184.02, while the Plantation Index rose 32.38 points to 7,156.25.
The Main Market volume expanded to 1.64 billion shares worth RM1.63 billion from 1.48 billion shares worth RM1.49 billion on Wednesday.
Warrants turnover declined to 308.49 million units valued at RM56.64 million versus 322.59 million units valued at RM47.53 million on Wednesday.
The ACE Market volume swelled to 604.56 million shares worth RM282.21 million from 365.79 million shares worth RM130.92 million previously.
Consumer products and services counters accounted for 257.97 million shares traded on the Main Market, industrial products and services (489.97 million), construction (39.19 million), technology (222.19 million), SPAC (nil), financial services (68.25 million), property (101.73 million), plantation (30.23 million), REITs (5.96 million), closed/fund (1,000), energy (192.53 million), healthcare (104.48 million), telecommunications and media (76.93 million), transportation and logistics (33.19 million), and utilities (14.92 million).
Source: The Edge
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