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 10): Bursa Malaysia ended lower on Wednesday (Nov 10), driven by continued profit taking on telecommunications and media as well as consumer products and services counters amid weaker sentiments on regional markets, dealers said.
At 5pm, the benchmark FBM KLCI closed 3.29 points lower at 1,520.74 from Tuesday's close at 1,524.03.
Axiata Group Bhd shed four sen to RM3.84, while MR DIY Group (M) Bhd fell five sen to RM3.65, dragging the key index lower by a combined 1.20 points.
The KLCI opened two points higher at 1,526.03 and fluctuated between 1,516.75 and 1,526.15 throughout the day.
The broader market was negative as decliners outpaced gainers 502 to 428, while 451 counters were unchanged, 903 untraded and 17 others suspended.
Turnover was slightly higher at 3.43 billion units valued at RM2.32 billion from Tuesday’s 3.11 billion units valued at RM2.39 billion.
Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said the KLCI remained under pressure due to lack of buying interest while market sentiment was further dampened by the spillover effect of the regional selldown.
“The benchmark index fell by 0.22% or 3.29 points to end at 1,520.74, dragged down mainly by banks, gloves and gaming stocks. Key regional markets also ended broadly lower following overnight losses on Wall Street,” he told Bernama on Wednesday.
Meanwhile, Thong said investors took a cautious stance amid the US producer price inflation data and looked ahead to the crucial consumer price inflation data.
“Back home, the KLCI succumbed to more intense selling as it was hovering just around the crucial 1,520 level. If the 1,520 level is broken, we see the 1,500 as the immediate psychological support level followed by the next critical support at around 1,490.
“Though we expect some bargain hunting to emerge, broad market sentiments have turned jittery as we reckon the index to move around the 1,520-1,530 range for the remainder of the week,” he added.
Among the heavyweights, Malayan Banking Bhd (Maybank) and IHH Healthcare Bhd were flat at RM7.99 and RM6.45 respectively, Public Bank Bhd fell one sen to RM4.02 and Tenaga Nasional Bhd (TNB) shed three sen to RM9.58, while Petronas Chemicals Group Bhd (PetChem) added one sen to RM8.30.
Of the actives, Eduspec Holdings Bhd was flat at 1.5 sen and KNM Group Bhd slipped 1.5 sen to 19 sen, while Scope Industries Bhd rose 4.5 sen to 44.5 sen and Solution Group Bhd improved 20.5 sen to 63 sen.
On the index board, the FBM Emas Index decreased 22.79 points to 11,266.58, the FBMT 100 Index reduced 19.04 points to 10,900.54, the FBM Emas Shariah Index declined 19.45 points to 12,278.59 and the FBM 70 slipped 8.40 points to 14,943.50, but the FBM ACE advanced 22.01 points to 6,938.58.
Sector-wise, the Industrial Products and Services Index inched up 0.19 of a point to 201.41, the Plantation Index gave up 21.97 points to 6,629.89 and the Financial Services Index shed 35.86 points to 15,094.25.
Main Market volume rose to 2.26 billion shares worth RM1.9 billion from 1.99 billion shares worth RM2.07 billion on Tuesday.
Warrant turnover increased to 268.25 million units worth RM42.28 million versus 171.7 million units worth RM27.22 million on Tuesday.
ACE Market volume narrowed to 896.43 million shares valued at RM369.91 million from Tuesday’s 934.31 million shares valued at RM296.8 million.
Consumer products and services counters accounted for 358.09 million shares traded on the Main Market, followed by industrial products and services (807.97 million), construction (105.32 million), technology (286.86 million), special purpose acquisition companies (nil), financial services (60.56 million), property (200.419 million), plantation (10.97 million), real estate investment trusts (5.62 million), closed/funds (7,500), energy (304.547 million), healthcare (43.96 million), telecommunications and media (25.69 million), transportation and logistics (47.2 million) as well as utilities (6.65 million).
Source: The Edge
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