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 20): Bursa Malaysia ended lower on Monday (Dec 20) in line with the weaker regional market sentiment, driven by continued selling in selected heavyweights led by Press Metal Aluminium Holdings Bhd and Tenaga Nasional Bhd (TNB).
The two counters contributed a combined 4.25 points to the barometer index, dealers said.
At 5pm, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) declined 8.11 points or 0.54% to end at 1.493.9 compared with 1,502.01 at Friday’s close.
The index opened 4.44 points weaker at 1,497.57 and fluctuated between 1,490.77 and 1,502.61 throughout the day.
On the broader market, losers thumped gainers 682 to 244, while 369 counters were unchanged, 1,009 untraded, and 21 others suspended.
Turnover declined to 2.47 billion units valued at RM1.73 billion from Friday’s 2.81 billion units worth RM2.74 billion.
Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said Malaysian equities ended lower as fears over the spread of the Omicron variant caused European countries to impose stricter movement controls and triggered selling in equities around the world.
“The FBM KLCI was dragged down by banking and oil and gas stocks. Key regional indices also trended lower due to the same reason (Omicron spread). The spread of the Omicron variant has fuelled fears that renewed curbs on business and travel might worsen supply chain disruptions and boost inflation.
“As for the local bourse, we expect sentiment will continue to remain cautious and reckon external uncertainties to be a major setback,” he told Bernama on Monday.
Thong said the local benchmark index was anticipated to hover within a wider range of 1,485 to 1,500 for the remainder of the week.
“From the technical point of view, we will see immediate resistance at 1,500 and support at 1,475,” he added.
Regionally, Japan's Nikkei 225 fell 2.13% to 27,937.81, Hong Kong’s Hang Seng Index slipped 1.93% to 22,744.86, Singapore’s Straits Times Index eased 1.26% to 3,072.14, and South Korea’s Kospi shed 1.81% to 2,963.
Among the heavyweights, Malayan Banking Bhd rose three sen to RM8.11 while Public Bank Bhd and IHH Healthcare Bhd shed one sen each to RM4.07 and RM6.53, respectively, Petronas Chemicals Group Bhd fell two sen to RM8.78, and TNB slipped 21 sen to RM9.30.
Of the actives, DGB Asia Bhd was flat at three sen, while Pasukhas Group Bhd, ATA IMS Bhd and AT Systematization Bhd eased half-a-sen each to two sen, 67.5 sen and four sen, respectively.
On the index board, the FBM Emas Index was 80.29 points lower at 10,840.03, the FBMT 100 Index fell 75.36 points to 10,547.35, and the FBM Emas Shariah Index decreased 105.5 points to 11,639.13.
The FBM 70 dropped 177.39 points to 13,822.46 and the FBM ACE erased 70.92 points to 6,206.9.
Sector-wise, the Financial Services Index dipped 39.04 points to 15,244.04, the Industrial Products and Services Index trimmed 2.27 points to 194.53, and the Plantation Index lost 77.67 points to 6,429.97.
The Main Market volume shrank to 1.43 billion shares valued at RM1.48 billion versus Friday’s 1.91 billion shares valued at RM2.51 billion.
Warrants turnover increased to 225.17 million units worth RM30.94 million against 194.05 million units worth RM26.73 million on Friday.
The ACE Market volume expanded to 814.31 million shares valued at RM209.94 million from 704.9 million shares valued at RM201.6 million previously.
Consumer products and services counters accounted for 223.48 million shares traded on the Main Market, industrial products and services (456.03 million), construction (45.46 million), technology (190.94 million), SPAC (nil), financial services (47.45 million), property (175.02 million), plantation (9.93 million), REITs (8.15 million), closed/fund (89,000), energy (68.72 million), healthcare (117.36 million), telecommunications and media (27.26 million), transportation and logistics (36.36 million), and utilities (26.71 million).
Source: The Edge
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