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 (Nov 1): Bursa Malaysia ended sharply lower with selling pressure seen across the board as investors reacted negatively to the one-off prosperity tax tabled during Budget 2022, dealers said.
At 5pm, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) dropped 31.39 points, or 2.01%, to 1,530.92 from Friday's close of 1,562.31.
The index, which opened 16.32 points lower at 1,545.99, fluctuated between 1,526.04 and 1,545.99 during the day's session.
On the broader market, losers thumped gainers 996 to 178, while 327 counters were unchanged, 773 untraded and 14 others suspended.Turnover rose to 3.47 billion units valued at RM3.23 billion from Friday’s 3.03 billion units valued at RM2.35 billion.
A dealer said Bursa Malaysia stayed in negative territory since the market opened on Monday despite a stronger close on Wall Street last Friday, as the proposed one-off prosperity tax was received unfavourably and weighed down market sentiment.
Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said the benchmark index was dragged down mainly by banking heavyweights.
“However, we believed the valuation of the local market remained attractive despite the Prosperity Tax as compared to regional peers.
“We reckoned the FBM KLCI to trade in a wider range due to greater volatility.
“For the week, we expect the benchmark index to consolidate further, with immediate support at 1,520 followed by the psychological support at around 1,500 while resistance at 1,550 and then 1,580,” he told Bernama.
Regionally, he noted the equities markets were mixed with Japanese equities ending higher as investors cheered general election results showing a victory for Prime Minister Fumio Kishida.
On the other hand, Chinese and Hong Kong equities retreated after data showed Chinese factory activity shrank last month, pointing to further weakness in the world's number two economy, he added.
Japan’s Nikkei 225 increased 2.61% to 29,647.08, the Singapore’s Straits Times Index added 0.66% to 3,219.35 and South Korea’s Kospi improved 0.28% to 2,978.94, but Hong Kong’s Hang Seng Index fell 0.88% to 25,154.32.
Among the heavyweights, Malayan Banking Bhd, IHH Healthcare Bhd and Tenaga Nasional Bhd shed six sen each to RM7.99, RM6.48 and at RM9.60 respectively, Public Bank Bhd fell 13 sen to RM4.04 while Petronas Chemicals Group Bhd dropped 34 sen to RM8.35.
Of the actives, AirAsia X Bhd lost two sen to 7.5 sen, KNM Group Bhd slid 1.5 sen to 19 sen, Hextar Industries Bhd added three sen to 17.5 sen while MMAG Holdings Bhd and Ta Win Holdings Bhd were flat at 10.5 sen and 15.5 sen respectively.
On the index board, the FBM Emas Index decreased 228.83 points to 11,330.17, the FBMT 100 Index dipped 229.59 points to 10,959.5, the FBM 70 went down 332.58 points to 14,969.79, the FBM Emas Shariah Index erased 225.52 points to 12,366.07, and the FBM ACE reduced 45.94 points to 7,050.23.
Sector-wise, the Industrial Products and Services Index eased 4.65 points to 202.14, the Plantation Index lost 75.41 points to 6,713.41, and the Financial Services Index tumbled 431.94 points to 15,157.27.
The Main Market volume went up to 2.27 billion shares worth RM2.89 billion from 2.01 billion shares worth RM2.09 billion on Friday.
Warrants turnover increased to 351.95 million units worth RM52.52 million versus 217.27 million units worth RM33.86 million previously.
Volume on the ACE Market rose to 838.38 million shares valued at RM288.84 million from Friday’s 804.57 million shares valued at RM230.11 million.
Consumer products and services counters accounted for 331.17 million shares traded on the Main Market, industrial products and services (757.93 million), construction (114.81 million), technology (232.81 million), SPAC (nil), financial services (188.63 million), property (231.03 million), plantation (27.78 million), REITs (4.89 million), closed/fund (26,600), energy (219.85 million), healthcare (35.05 million), telecommunications and media (43.87 million), transportation and logistics (69.21 million), and utilities (15.85 million).
Source: The Edge
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