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 1): Bursa Malaysia succumbed to heavy selling pressure on Wednesday with the benchmark index falling below the 1,500 psychological level amid fears that the Omicron variant could possibly halt global economic recovery, said an analyst.
At 5pm, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) fell 1.13% or 17.05 points to end at 1,496.93 from 1,513.98 at Tuesday’s closing.
The market bellwether opened 6.5 points lower at 1,507.48 and moved between 1,495.75 and 1,509.9 throughout the trading session.
On the broader market, losers trounced gainers 679 to 293, while 390 counters were unchanged, 915 untraded, and 21 others suspended.
Turnover dwindled to 3.64 billion units worth RM2.74 billion from Tuesday’s 5.67 billion units valued at RM7.97 billion.
Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said the local equity market’s performance on Wednesday was dragged down mainly by banks, telecommunications, and glove counters.
On the other hand, he said key regional markets rebounded following the heavy selldown on Tuesday after US Federal Reserve Chairman Jerome Powell signalled that monetary policy could be tightened earlier than expected to fight inflation risks.
Meanwhile, on the domestic front, the market undertone is jittery as the benchmark index has broken the psychological 1,500 level.
“Nonetheless, the local market valuation remains cheaper compared with regional peers, hence we believe bargain hunting shall prevail.
“As such, we expect the FBM KLCI to trend within the 1,500-1,510 range for the rest of the week. From a technical point of view, we see critical support level at 1,490 and resistance at 1,530,” he told Bernama.
Among the top losers, Top Glove Corp Bhd shed 19 sen to RM2.76, Maxis Bhd fell 23 sen to RM4.45, and PPB Group Bhd lost 76 sen to RM17.06.
Malayan Banking Bhd and Public Bank Bhd eased three sen each to RM7.95 and RM3.91 respectively, IHH Healthcare Bhd dropped one sen to RM6.57, CIMB Group Holdings Bhd was down 15 sen at RM5.03, Tenaga Nasional Bhd slid two sen to RM9.22 and Petronas Chemicals Group Bhd was flat at RM8.50.
Of the actives, Kanger International Bhd and Lambo Group Bhd were flat at 3.5 sen and five sen, respectively, while BCM Alliance Bhd slipped one sen to four sen.
On the index board, the FBM Emas Index sank 114.99 points to 110,968.79, the FBMT 100 Index tumbled 104.32 points to 10,665.25, and the FBM Emas Shariah Index was 150.16 points lower at 11,978.46.
The FBM 70 lost 72.63 points to 14,368.99 and the FBM ACE declined 64.32 points to 6,465.62.
Sector-wise, the Industrial Products and Services Index shed 0.63 of-a-point to 194.41, the Financial Services Index fell 106.15 points to 14,928.36, but the Plantation Index recovered 4.79 points to 6,437.43.
The Main Market volume tumbled to 1.85 billion shares worth RM2.41 billion versus Tuesday’s 4.24 billion shares valued at RM7.49 billion.
Warrants turnover dwindled to 240.89 million units valued at RM37.28 million against 422.05 million units worth RM71.79 million previously.
The volume on the ACE Market, however, increased to 1.54 billion shares valued at RM291.86 million from 997.19 million shares valued at RM403.62 million on Tuesday.
Consumer products and services counters accounted for 242.57 million shares traded on the Main Market, industrial products and services (641.53 million), construction (87.91 million), technology (274.22 million), SPAC (nil), financial services (116.03 million), property (108.3 million), plantation (21.18 million), REITs (12.09 million), closed/fund (72,700), energy (96.98 million), healthcare (174.18 million), telecommunications and media (29.4 million), transportation and logistics (36.2 million), and utilities (14.46 million).
Source: The Edge
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