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 3): Bursa Malaysia ended lower on Wednesday as investors offloaded selected heavyweight stocks, led by Top Glove Corporation Bhd and Maxis Bhd, dealers said.
At 5pm, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) fell 6.3 points to 1,531.33 from Tuesday's close of 1,537.63.
Top Glove and Maxis shed nine sen each to RM2.49 and RM4.58 respectively, altogether dragging the barometer index down by 2.58 points.
The index, which opened 5.52 points higher at 1,543.15, fluctuated between 1,530.35 and 1,543.87 during the day.
On the broader market, decliners outpaced gainers 647 to 322, while 443 counters were unchanged, 863 untraded, and 19 others suspended.
Turnover slipped to 3.42 billion units valued at RM2.35 billion from Tuesday’s 3.65 billion units valued at RM2.71 billion.
A dealer said Bursa Malaysia had opened higher after taking its cue from the stronger Wall Street performance overnight, but turned lower across the board at mid-morning on Wednesday, except for the healthcare and financial services sectors, which saw continued buying interest and supported the barometer index.
He said the local bourse’s performance was in line with regional peers which ended mostly lower on Wednesday as investors awaited comments from the US Federal Reserve’s policy meeting later for market direction.
“The US central bank is expected to disclose plans to ease pandemic stimulus measures and boost the economy,” he said.
Regionally, Singapore’s Straits Times Index trimmed 0.37% to 3,220.4, South Korea’s Kospi fell 1.25% to 2,975.71 and Hong Kong’s Hang Seng Index shed 0.3% to 25,024.75 while Japan is closed for a holiday.
Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid told Bernama that the FBM KLCI is still reeling from the impact of Cukai Makmur or prosperity tax as corporates will need to take into account the impact of the windfall tax on their earnings.
“Despite that, we saw foreign investors recording net purchases [on Tuesday,] amounting to RM59.85 million compared to net purchases of RM14.97 million on Monday as they saw values emerging in some the local stocks and started to acquire,” he said.
On another note, he said the latest move by Bank Negara Malaysia to maintain the Overnight Policy Rate (OPR) at 1.75% on Wednesday indicated that the central bank is committed to ensuring that the monetary policy remains supportive of the country’s economy.
“This would mean the cost of funds remains competitive, thereby stimulating capital expenditure among the firms. In the meantime, we expect range-bound trade amid the holiday-shortened week,” he added.
Among the heavyweights, Malayan Banking Bhd gained one sen to RM8, Petronas Chemicals Group Bhd added three sen to RM8.31, IHH Healthcare Bhd rose six sen to RM6.52, Tenaga Nasional Bhd eased two sen to RM9.58 while Public Bank Bhd was flat at RM4.04.
Of the actives, NWP Holdings Bhd bagged six sen to 30 sen, Sedania Innovator Bhd perked up 6.5 sen to 69.5 sen, Dagang NeXchange Bhd reduced four sen to 78.5 sen, AirAsia X Bhd slid one sen to 4.5 sen while Sapura Energy Bhd was flat at 10 sen.
On the index boards, the FBM Emas Index decreased 39.98 points to 11,358.51, the FBMT 100 Index declined 32.29 points to 10,984.73, the FBM Emas Shariah Index slipped 57.94 points to 12,399.65 and the FBM ACE contracted 48.51 points to 7,073.96.
However, the FBM 70 improved 5.91 points to 15,091.21.
Sector-wise, the Industrial Products and Services Index eased 0.3 of-a-point to 203.05, the Plantation Index gave up 54.42 points to 6,788.5 while the Financial Services Index inched up 7.28 points to 15,187.09.
The Main Market volume declined to 2.29 billion shares worth RM2 billion from 2.35 billion shares worth RM2.33 billion on Tuesday.
Warrants turnover decreased to 264.64 million units worth RM42.79 million versus 395.01 million units worth RM72.67 million on Tuesday.
Volume on the ACE Market fell to 856.9 million shares valued at RM313.42 million from Tuesday’s 908.16 million shares valued at RM304.85 million.
Consumer products and services counters accounted for 382.18 million shares traded on the Main Market, industrial products and services (826.08 million), construction (188.99 million), technology (315.82 million), SPAC (nil), financial services (56.11 million), property (136.43 million), plantation (15.86 million), REITs (6.02 million), closed/fund (2,200), energy (202.90 million), healthcare (57.09 million), telecommunications and media (22 million), transportation and logistics (66.29 million), and utilities (18.38 million).
Bursa Malaysia and its subsidiaries will be closed on Thursday in conjunction with Deepavali.
Source: The Edge
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