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 (April 22): Bursa Malaysia ended higher for the fourth consecutive day on Monday with the key index rising 0.78%, tracking the mostly higher performance in regional markets.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 12.02 points to 1,559.59 from last Friday's close of 1,547.57.
The benchmark index, which opened one point firmer at 1,548.57, moved between 1,548.38 and 1,559.94 throughout the trading session.
On the broader market, gainers thumped decliners 764 to 331, while 420 counters were unchanged, 858 untraded, and 24 others suspended.
Turnover fell to 3.49 billion units worth RM2.53 billion from 4.71 billion units worth RM3.4 billion last Friday.
Rakuten Trade Sdn Bhd equity research vice president Thong Pak Leng said the major regional indices finished mostly higher as worries over an expanded conflict in the Middle East eased, prompting investors to re-embrace riskier assets.
"Gold and the traditionally safe-haven dollar retreated from their recent highs, while crude oil prices fell amidst diminishing concerns over a significant supply disruption.
"Additionally, the People’s Bank of China opted to maintain its benchmark loan prime rate at historically low levels on Monday, signalling its commitment to maintaining accommodative monetary conditions to bolster economic recovery," he said.
Meanwhile, Mohd Sedek Jantan, head of wealth research and advisory and designated portfolio manager at UOB Kay Hian Wealth Advisors, said the KLCI soared on Monday, effectively restoring its pre-Iran strike level, and showcasing the local market’s resilience amidst global uncertainties.
"Moreover, the recent upward revision of Malaysia's gross domestic product figures by the International Monetary Fund (IMF) to 4.4% underscores the nation's economic strength and potential, instilling confidence among investors.
"This positive adjustment is poised to inject a sense of stability into the market, fostering a conducive environment for growth and prosperity," he said.
Mohd Sedek expects higher market volatility this week due to the earnings releases of prominent US technology giants including Tesla, Meta, IBM, Microsoft, Alphabet, and Intel.
"While these disclosures may introduce short-term fluctuations, it's imperative to acknowledge that the regional markets, buoyed by burgeoning artificial intelligence-related optimism, stand well-positioned to weather any turbulence," he added.
As for the local bourse, he observes a shift in sentiment towards a more positive direction currently and anticipates the benchmark index to trend within the 1,540-1,570 range for the week with immediate resistance at 1,570 and support at 1,540.
Among the heavyweights, Maybank Bhd gained nine sen to RM9.74, Public Bank Bhd added five sen to RM4.20, CIMB Group Holdings Bhd went up six sen to RM6.62, Tenaga Nasional Bhd rose four sen to RM11.64, but Petronas Chemicals Group Bhd eased two sen to RM6.81.
As for
the actives, Main Market debutant Keyfield International Bhd surged
RM1.03 sen to RM1.93, Reneuco Bhd and Dataprep Holdings Bhd put on 1.5
sen to nine sen and 13.5 sen respectively, Pan Malaysia Holdings Bhd was
half a sen higher at 21.5 sen, while Bina Puri Holdings Bhd inched down
half a sen to 7.5 sen.
On the index board, the FBM Emas Index jumped 87.55 points to 11,683.62,
the FBM 70 Index soared 96.54 points to 16,154.93, the FBMT 100 Index
advanced 82.29 points to 11,330.24, the FBM Emas Shariah Index climbed
65.54 points to 11,835.41, and the FBM ACE Index garnered 70.36 points
to 4,929.34.
Sector-wise, the Plantation Index rose 40.54 points to 7,416.19, the Industrial Products and Services Index inched up 0.59 of a point to 185.08, the Energy Index was 2.93 points better at 972.12, and the Financial Services Index surged 150.51 points to 17,269.29.
The Main Market volume declined to 1.95 billion units valued at RM2.22 billion versus 2.77 billion units valued at RM3.01 billion last Friday.
Warrants turnover slid to 979.82 million units worth RM119.15 million against 1.23 billion units worth RM164.40 million previously.
The ACE Market volume declined to 558.35 million shares worth RM187.78 million from 702.72 million shares worth RM222.46 million on Friday.
Consumer products and services counters accounted for 330.31 million shares traded on the Main Market, industrial products and services (350.55 million), construction (249.06 million), technology (261.91 million), SPAC (nil), financial services (72.52 million), property (273.67 million), plantation (29.85 million), REITs (14.66 million), closed/fund (15,800), energy (215.63 million), healthcare (45.54 million), telecommunications and media (21.09 million), transportation and logistics (29.83 million), utilities (56.28 million), and business trust (939,600).
Source: The Edge
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