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...
Market Daily Report: Malaysian stocks’ market capitalisation reaches historical high of RM2 trillion
KUALA LUMPUR (May 7): Malaysian stocks hit RM2 trillion in market capitalisation for the first time ever on Tuesday thanks to broad gains in blue chip stocks and a slew of new listings.
The benchmark index FBM KLCI rallied for its fourth straight days to 1,605.68, its highest close since April 8, 2022, led by consumer and banking stocks. So far this year, the KLCI has racked up over 10% gains.
“We have seen foreign investors become net buyers again recently as the US economy is showing signs of slowing down, reviving hope of earlier interest rate cut,” Fortress Capital chief executive officer Datuk Thomas Yong told The Edge. Blue chips with strong fundamentals will likely continue to do well, he noted.
Investors also bet on small-cap stocks, pushing the index to its highest since Oct 2014, while Bursa Malaysia's Mid 70 Index also gained. ACE Market stocks, however, edged lower on Tuesday.
Stocks on the Main Market accounted for 97% of the entire equity market capitalisation, with the ACE Market and LEAP Market making up the rest. All in all, there are 2,315 securities listed on Bursa Malaysia.
Bursa Malaysia has also listed 18 companies so far this year, and most have delivered gains since their debut. This year, Bursa Malaysia aims to host 42 initial public offerings with a market capitalisation of RM13 billion.
By the end of April, 21 of the 31 stocks listed on the Main Market and ACE Market in 2023 have racked up gains of up to 360% from their listing price, according to data compiled by The Edge.
For companies that launched their IPOs this year, only one out of the 13 newly-listed stocks ended April below its IPO price. The remaining 12 IPOs posted gains of up 147% by the end of last month.
Source: The Edge
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