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 (Dec 16): Bursa Malaysia extended Wednesday's gains to end slightly higher on Thursday on improved risk appetite, taking cue from the Wall Street performance overnight, dealers said.
At 5pm, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) rose 1.83 points to 1,484.64 from 1,482.81 at Wednesday’s close.
The index, which opened 2.65 points better at 1,485.46, moved between 1,483.79 and 1,491.69 throughout the trading session.
On the broader market, gainers thumped losers 504 to 361, while 424 counters were unchanged, 1,026 untraded, and 37 others suspended.Turnover improved to 2.83 billion units valued at RM2.35 billion from Wednesday’s 2.82 billion units valued at RM1.74 billion.
A dealer said the local bourse opened higher and stayed in positive territory throughout the trading session with the benchmark index ending 0.12% better, lifted mainly by banking stocks.
“The performance was in line with regional peers, which tracked the higher Wall Street performance, amid risk-on mode in reaction to the Federal Reserve’s (Fed) hawkish statement.
“The Fed announced it would end bond-buying stimulus in March to set up guidance for three interest rate hikes each in 2022 and 2023 to tackle heated inflation. This spurred a risk rally,” he added.
Regionally, Japan's Nikkei 225 rose 2.13% to 29,066.32 and Singapore’s Straits Times Index increased 0.61% to 3,133.9, South Korea’s Kospi added 0.57% to 3,006.41, and Hong Kong’s Hang Seng Index improved 0.23% to 23,475.5.
Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said despite the improvement in regional market sentiment, the company reckoned that market volatility would heighten going forward, thus the regional markets are expected to encounter wilder swings.
“Taking cognisance of this, we prefer to stay cautious. We believe the local market will see more headwinds and that the FBM KLCI will experience more resistance.
“Hence, we anticipate the local bourse to remain subdued with the index hovering within the 1,480 to 1,490 range towards the weekend,” he told Bernama.
Among heavyweights, Malayan Banking Bhd improved one sen to RM8.11, Public Bank Bhd and IHH Healthcare Bhd perked up two sen each to RM4.03 and RM6.50, respectively, Petronas Chemicals Group Bhd rose seven sen to RM8.68, while Tenaga Nasional Bhd erased five sen to RM9.24.
Of the actives, ATA IMS Bhd shed 1.5 sen to 68 sen, ACE Market debutant Aurelius Technologies Bhd advanced 34 sen to end at RM1.70, while Pasukhas Group Bhd, Saudee Group Bhd and Impiana Hotels Bhd were flat at 2.5 sen, six sen and 8.5 sen respectively.
Meanwhile, Bursa Malaysia, in a statement on Wednesday, announced the change in the name of Macpie Bhd, with a short stock name of Macpie, to XOX Networks Bhd, with a short stock name of XOXNet, effective 9am on Friday, Dec 17.
On the index board, the FBM Emas Index was 14.23 points higher at 10,829.67, the FBMT 100 Index gained 13.66 points to 10,522.83, the FBM 70 rose 20.76 points to 13,960.06, and the FBM ACE advanced 79.98 points to 6,278.11.
The FBM Emas Shariah Index eased 3.51 points to 11,636.76.
Sector-wise, the Industrial Products and Services Index edged up 0.81 of-a-point to 194.73, the Financial Services Index surged 114.67 points to 15,221.59, while the Plantation Index lost 27.88 points to 6,359.16.
The Main Market volume widened to 2.0 billion shares valued at RM2.16 billion versus Wednesday’s 1.76 billion shares valued at RM1.53 billion.
Warrants turnover decreased to 248.97 million units worth RM35.14 million against 263.92 million units worth RM44.33 million on Wednesday.
The ACE Market volume fell to 580.95 million shares valued to RM160.68 million from 794.2 million shares valued at RM165.63 million previously.
Consumer products and services counters accounted for 324.47 million shares traded on the Main Market, industrial products and services (964.67 million), construction (51.33 million), technology (218.8 million), SPAC (nil), financial services (65.18 million), property (78.45 million), plantation (17.96 million), REITs (6.97 million), closed/fund (372,700), energy (99.64 million), healthcare (84.57 million), telecommunications and media (30.06 million), transportation and logistics (26.55 million), and utilities (28.02 million).
Source: The Edge
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