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 17): Bursa Malaysia staged a mild recovery on Wednesday (May 17) as investors took some profits, but the continuous buying support in selected heavyweight counters managed to push the key index into positive territory at the close.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) added 0.84 of a point to 1,424.34 from 1,423.50 at Tuesday's close.
The barometer index, which opened 1.49 points lower at 1,422.01 this morning, fluctuated between 1,421.34 and 1,427.40 throughout the day.
The FBM
KLCI was mainly driven by gains in Sime Darby Plantation and Petronas
Dagangan, with a combined contribution of 3.178 points.
Sime Darby Plantation surged 17 sen or 3.86% to RM4.58 while Petronas Dagangan soared 76 sen or 3.48% to RM22.60.
However, the broader market saw a little gap between losers and gainers at 427 and 412, while 403 counters were unchanged, 1,014 untraded and 23 others suspended.
Turnover increased marginally to 2.59 billion units worth RM1.63 billion from 2.57 billion units valued at RM1.51 billion on Tuesday.
Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the FBM KLCI reversed earlier gains and closed flattish due to some profit-taking towards the end of the trading session.
Nonetheless, the benchmark index managed to end in positive territory, he said.
“We expect bargain hunting activities will continue given the attractive valuations of the benchmark index and other local stocks.
“Nevertheless, investors will remain cautious due to increasing market risks and volatility globally,” he told Bernama, anticipating the FBM KLCI to trend within the range of 1,420 and 1430 for the remainder of the week with immediate resistance at 1,440 and support at 1,415.
Elsewhere, Thong said major stock markets in the region trended mostly lower as investors exercise caution due to concerns about a potential United States (US) debt default.
Negotiations among policymakers are ongoing to raise the debt ceiling before the June 1 deadline.
Furthermore, the sentiment towards riskier assets has been dampened by the hawkish remarks made by several Federal Reserve officials, indicating that US interest rates are expected to remain elevated for an extended period, he said.
Meanwhile, Malacca Securities Sdn Bhd senior analyst Kenneth Leong said the local market took the cue from the signs of positive progress to raise the debt ceiling in the US.
Gains, however, were measured owing to the persistent selling activities from foreign funds, while the ringgit continues to lose ground against the US dollar, he said.
“Looking ahead, we reckon that further bargain hunting activities may be on the cards on the back of the calmer market conditions currently.
“Technically, we reiterate our stance that the immediate resistance is located at 1,437. The support, meanwhile, remain pegged at 1,413,” he said.
Leong added that the ongoing batch of corporate earnings released would be kept under investors' radar, while on the global scale, the US debt ceiling situation will be in focus.
As for other heavyweights, Public Bank picked up one sen to RM3.96 and Tenaga Nasional gained two sen each to RM9.75.
Maybank and IHH Healthcare trimmed two sen each to RM8.71 and RM5.90 respectively, Petronas Chemicals lost nine sen to RM6.98, and CIMB shed one sen to RM4.98.
Among the actives, YTL Corporation rose 8.5 sen to 75 sen, Vinvest and Metronic slipped half sen each to eight sen and 1.5 sen, while Velesto and Classita were flat at 25 sen and 15 sen respectively.
On the index board, the FBM Emas Index increased 22.06 points to 10,441.44, the FBMT 100 Index garnered 21.03 points to 10,136.52, the FBM Emas Shariah Index advanced 32.28 points to 10,811.66, and the FBM 70 Index soared 90.67 points to 13,584.02.
The FBM ACE Index, however, lost 3.79 points to 4,996.78.
Sector-wise, the Plantation Index surged 114.7 points to 7,048.42, the Energy Index added 0.63 of-a-point to 834.57, but the Financial Services Index went down 25.53 points to 15,505.61, while the Industrial Products and Services Index slipped 0.32 of-a-point to 166.42.
The Main Market volume expanded to 1.67 billion units valued at RM1.41 billion from 1.52 billion units valued at RM1.27 billion on Tuesday.
Warrants turnover increased to 416.95 million units worth RM64.41 million against 291.71 million units worth RM48.63 million Tuesday.
The ACE Market volume, however, decreased to 507.62 million shares valued at RM156.89 million versus 753.82 million shares valued at RM193.39 million previously.
Consumer products and services counters accounted for 308.48 million shares traded on the Main Market, industrial products and services (405.73 million); construction (39.04 million); technology (143.61 million); SPAC (nil); financial services (42.84 million); property (199.37 million); plantation (30.39 million); REITs (20.24 million), closed/fund (5,000); energy (150.57 million); healthcare (104.12 million); telecommunications and media (33.4 million); transportation and logistics (27.47 million); and utilities (164.78 million).
Source: The Edge
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