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 29): Bursa Malaysia’s main index ended in positive territory after a see-saw trading session, boosted by gains in selected heavyweights led by Press Metal Aluminium Holdings Bhd and CelcomDigi Bhd.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) went up 1.95 points to close at 1,404.93 compared with 1,402.98 at last Friday's close.
The barometer index, which opened 2.49 points higher at 1,405.47 on Monday morning, moved between 1,401.93 and 1,406.53 throughout the day.
Nevertheless, the broader market remained negative with decliners beating advancers 449 to 376, while 445 counters were unchanged, 1,005 untraded and 53 others suspended.
Turnover rose to 2.73 billion units worth RM1.87 billion from 2.44 billion units worth RM2.28 billion last Friday.
Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng told Bernama that gains in the domestic market were capped as investors were cautious about the impact of US inflation and the spectre of a recession in the world’s biggest economy, which have been hitting corporate profits and forecasts.
"All these developments in the US would have an impact on investor sentiment globally in the short term," he added.
Thong said the FBM KLCI trended higher on Monday as bargain hunting emerged following last week's selldown.
“We reckon the selldown in the past few trading sessions will provide sufficient upside for investors as the valuation of the benchmark has become more attractive, plus the improving economic condition locally.
“As such, we expect bargain-hunting activities to continue and anticipate the FBM KLCI to trend higher within the range of 1,400-1,415 for the week,” he said.
Regionally, Thong said the key indices ended mostly higher after US President Joe Biden and House Speaker Kevin McCarthy reached a final agreement on a deal to raise the US national debt ceiling.
Back home, heavyweights Press Metal gained 16 sen to RM4.90, CelcomDigi earned 10 sen to RM4.56, Telekom Malaysia Bhd went up 12 sen to RM5.20, Tenaga Nasional Bhd rose six sen to RM9.75, and IOI Corp Bhd was four sen higher at RM3.95.
Axiata Group Bhd eased 14 sen to RM2.77 after its lower-than-expected first-quarter results announcement, while Petronas Chemicals Group Bhd slid eight sen to RM6.87.
Among the actives, ACE Market debutant Cloudpoint Technology Bhd jumped 13.5 sen to 51.5 sen over its offer price of 38 sen a share, Bahvest Resources Bhd dropped 2.5 sen to 20 sen, and YTL Corporation Bhd added 6.5 sen to 90 sen.
Ta Win Holdings Bhd was half-a-sen weaker at 3.5 sen, while Sapura Energy Bhd was flat at 3.5 sen.
On the index board, the FBM Emas Index went up 28.61 points to 10,325.05, the FBMT 100 Index garnered 28.98 points to 10,031.61 and the FBM Emas Shariah Index rose 41.04 points to 10,710.07.
The FBM 70 Index climbed 101.62 points to 13,581.62 while the FBM ACE Index was 9.82 points lower at 4,971.08.
Sector-wise, the Financial Services Index lost 7.15 points to 15,297.28, the Industrial Products and Services Index perked up 0.45 of a point to 164.53, the Plantation Index rose 39.15 points to 6,794.41, and the Energy Index added 5.56 points to 813.87.
The Main Market volume narrowed to 1.53 billion units valued at RM1.45 billion from 1.70 billion units valued at RM2.05 billion last Friday.
Warrants turnover expanded to 274.34 million units worth RM35.30 million against 210.10 million units worth RM23.01 million.
The ACE Market volume surged to 921.19 million shares valued at RM388.47 million from 535.86 million shares valued at RM206.90 million previously.
Consumer products and services counters accounted for 267.48 million shares traded on the Main Market, industrial products and services (330.15 million), construction (55.77 million), technology (138.41 million), SPAC (nil), financial services (57.38 million), property (182.63 million), plantation (28.09 million), REITs (6.18 million), closed/fund (nil), energy (216.35 million), healthcare (49.73 million), telecommunications and media (47.83 million), transportation and logistics (17.15 million), and utilities (134.32 million).
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