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 21 (Bernama) -- Bursa Malaysia closed lower on Tuesday after notching a small gain in early trade as profit-taking activities set in ahead of the Wesak Day public holiday on Wednesday.
At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) declined 5.41 points, or 0.33 per cent, to 1,622.09 from Monday's close of 1,627.50.
The benchmark index, which opened 0.88 of-a-point firmer at 1,628.38, its intraday high, and hit a low of 1,620.80 in the mid-morning session.
On the broader market, losers led gainers 726 to 470, with 492 counters unchanged, 701 untraded and nine others suspended.
Turnover eased to 5.42 billion units worth RM4.22 billion compared to Monday's 6.98 billion units worth RM4.36 billion.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said profit-taking activities have seeped in, considering that the barometer index has gone up 2.9 per cent on a month-to-date basis.
"Banks, plantation as well as oil and gas are some of the industries which drove the benchmark index lower today,” he told Bernama.
Meanwhile, Bursa Malaysia in a posting on X today said that Malaysia's benchmark index has outperformed the regional peers since the beginning of the year, which is 4.4 percentage points higher than the second-highest index.
Other than price performance, it said the FBM KLCI also recorded among the highest dividend yields.
Yesterday, shares on Bursa Malaysia breached the 1,620-point resistance level on Monday as funds poured in, lifting the key index to its highest since March 2021.
UOB Kay Hian Wealth Advisors’ head of investment research Mohd Sedek Jantan said the recent significant gains in the local market have enticed investors to book profits.
"The market is still largely dominated by bullish sentiment, but trading may become volatile as corporate earnings take precedence," he said.
Therefore, he anticipates the FBM KLCI index to fluctuate between 1,620 and 1,640 level this week, with support levels at 1,600 and 1,575, and resistance levels at 1,635 and 1,650.
Among the heavyweights, Maybank, Public Bank, Tenaga Nasional, and CIMB were unchanged at RM9.99, RM4.19, RM12.78, and RM6.84 respectively, while Petronas Chemicals shed six sen to RM7.03.
Of the actives, Ingenieur slipped one sen to seven sen, Feytech gained 30 sen to RM1.10, BCM Alliance added half-a-sen to 1.5 sen, YNH Property rose 2.5 sen to 47.5 sen, while DNeX was unchanged at 44.5 sen.
Source: Bernama Bernama
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