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 17): Bursa Malaysia snapped four consecutive days of losses to end higher on Wednesday as bargain hunting emerged following the recent sell-off, said an analyst.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 5.42 points, or 0.35%, to 1,540.42 from Tuesday’s close of 1,535.0.
The benchmark index, which opened 0.05 of a point firmer at 1,535.05, moved between 1,532.95 and 1,541.88 throughout the trading session.
On the broader market, gainers trounced decliners 717 to 318, while 469 counters were unchanged, 848 untraded, and 11 others suspended.
Turnover slipped to 3.45 billion units worth RM2.67 billion from 4.93 billion units worth RM3.72 billion on Tuesday.
Rakuten Trade Sdn Bhd equity research vice president Thong Pak Leng said most key regional indices also rebounded following the recent sell-off, which saw Hong Kong’s Hang Seng Index inch up 0.02% to 16,251.84, China's SSE Composite Index improved 2.14% to 3,071.38, and Singapore’s Straits Times Index rose 0.63% to 3,164.42.
Nonetheless, gains are capped in certain markets on expectations the US' interest rates will stay high, he said.
"On the domestic front, we remain cautious as the short-term direction of the local market is significantly influenced by external factors, such as regional volatility, interest rates, and geopolitical tensions. However, we expect stock accumulation to persist on market dips," he said.
Thong also anticipates the KLCI to trend sideways with an upside bias within the range of 1,530-1,550 for the remainder of the week with immediate support at 1,530 and resistance at 1,570.
Meanwhile, Mohd Sedek Jantan, head of wealth research and advisory and designated portfolio manager at UOB Kay Hian Wealth Advisors, said investors are adeptly navigating through a dual narrative, namely the necessity for additional policy support to facilitate China's gradual recovery and the backdrop of a resilient US economy.
"Furthermore, concerns regarding the Middle East crisis appear to be easing as first-quarter corporate earnings reports continue to be released," he said.
Among the heavyweights, Maybank Bhd added two sen to RM9.60, Public Bank Bhd and CIMB Group Holdings Bhd gained five sen to RM4.15 and RM6.53, respectively, Tenaga Nasional Bhd put on four sen to RM11.52, and Petronas Chemicals Group Bhd increased three sen to RM6.83.
As for the actives, Bina Puri Holdings Bhd and MyEG Services Bhd edged up half a sen to 8.5 sen and 77.5 sen, respectively, while Alpha IVF Group Bhd eased half a sen to 33 sen, Avillion Bhd shed 1.5 sen to 4.5 sen, and Ingenieur Gudang Bhd was flat at 14.5 sen.
On the index board, the FBM Emas Index climbed 62.43 points to 11,577.44, the FBMT 100 Index rose 50.41 points to 11,219.39, and the FBM ACE Index jumped 43.43 points to 4,925.37.
The FBM Emas Shariah Index expanded 60.88 points to 11,757.31 and the FBM 70 Index surged 117.32 points to 16,114.12.
Sector-wise, the Industrial Products and Services Index inched up 1.23 points to 183.31, the Energy Index perked up 9.23 points to 959.17, and the Financial Services Index increased 98.54 points to 17,107.49, while the Plantation Index decreased 41.36 points to 7,357.88.
The Main Market volume shrank to 2.05 billion units valued at RM2.39 billion versus 3.03 billion units valued at RM3.36 billion on Tuesday.
Warrants turnover dwindled to 808 million units worth RM95.66 million against 1.14 billion units worth RM128.5 million the day before.
The ACE Market volume tumbled to 588.2 million shares worth RM184.38 million from 744.71 million shares worth RM231.13 previously.
Consumer products and services counters accounted for 303.25 million shares traded on the Main Market, industrial products and services (430.87 million), construction (263.5 million), technology (195.25 million), SPAC (nil), financial services (98.66 million), property (342.52 million), plantation (41.92 million), REITs (10.62 million), closed/fund (16,000), energy (170.37 million), healthcare (58.37 million), telecommunications and media (38.15 million), transportation and logistics (44.90 million), and utilities (54.44 million).
Source: The Edge
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