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 (Sept 29): Bursa Malaysia finished at its intra-day high for the second consecutive day on Wednesday, lifted by late buying in selected financial services as well as industrial products and services counters amid concerns over the local and global economic outlook, dealers said.
At 5pm, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) added 0.83 of-a-point or 0.05% to 1,547.65 from Tuesday’s close of 1,546.82.
The index, which opened 4.86 points lower at 1,541.96, moved as low as 1,528.69 during the day.
Meanwhile, market breadth was negative with decliners surpassing gainers 581 to 398, while 455 counters were unchanged, 870 untraded and 85 others suspended.
Turnover declined to 3.67 billion units worth RM2.71 billion from Tuesday’s 5.45 billion units worth RM3.29 million.
A dealer said investors’ sentiment turned cautious on Wednesday over the World Bank’s move to revise Malaysia’s 2021 economic growth projection downwards to 3.3% from the 4.5% forecast in June.
In a statement on Tuesday, the World Bank said the ongoing Movement Control Orders, increased precautionary behaviour and subdued labour market conditions were expected to weigh down further on private consumption and overall economic growth, especially for service-related sectors which had been heavily impacted by movement restrictions.
Regionally, another dealer said, most of the Asian markets were weaker on Wednesday as investors grew cautious over the United States’ debt limit expiry and the likelihood of China’s Evergrande defaulting on bond interest payments due on Wednesday.
Back home, CIMB Group Holdings Bhd and Petronas Chemicals Group Bhd were the top two contributors towards the benchmark index with a total of 2.24 points, as both stocks rose by seven sen each to RM4.81 and RM8.72, respectively.
Among other heavyweights, Malayan Banking Bhd and IHH Healthcare Bhd were flat at RM8.10 and RM6.70, respectively, Tenaga Nasional Bhd added seven sen to RM9.75, Hong Leong Bank Bhd rose six sen to RM18.78, and Public Bank Bhd slipped a sen to RM4.10.
Of the actives, Dagang NeXchange Bhd and KNM Group Bhd trimmed two sen each to 78.5 sen and 23 sen, respectively, while newly-listed CEKD Bhd jumped 6.5 sen from its offer price to 54.5 sen and Pegasus Heights Bhd was flat at one sen.
On the index board, the FBM Emas Index gained 13.19 points to 11,345.02, the FBMT 100 Index was 10.84 points better at 11,039.83, and the FBM Emas Shariah Index perked 19.07 points to 12,394.35.
The FBM 70 advanced 33.68 points to 14,925.86 while the FBM ACE fell 21.01 points to 7,165.07.
Sector-wise, the Industrial Products and Services Index increased 0.98 of-a-point to 205.07, the Plantation Index went up 12.76 points to 6,348.32, and the Financial Services Index rose 28.84 points to 15,259.87.
The Main Market volume decreased to 2.5 billion shares worth RM2.35 billion from Tuesday’s 3.44 billion shares worth RM2.86 billion.
Warrants turnover grew to 419.08 million units valued at RM69.34 million versus 356.79 million units worth RM56.92 million yesterday.
The volume on the ACE Market shrank to 746.93 million shares worth RM286.96 million from 1.65 billion shares worth RM373.08 million on Tuesday.
Consumer products and services counters accounted for 386.66 million shares traded on the Main Market, industrial products and services (771.52 million), construction (63.35 million), technology (315.19 million), SPAC (nil), financial services (41.64 million), property (294.8 million), plantation (17.29 million), REITs (6.22 million), closed/fund (16,100), energy (259.15 million), healthcare (79.15 million), telecommunications and media (78.76 million), transportation and logistics (166.91 million) and utilities (17.34 million).
Source: The Edge
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