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 (Feb 21): Bursa Malaysia closed broadly lower across the board on Monday (Feb 21) due to heavy profit-taking activities following strong rallies for over a week, a dealer said.
At 5pm, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) was lower by 1.27% or 20.36 points to 1,582.69 from 1,603.05 at Friday's close.
The index, which opened 1.39 points lower at 1,601.66, moved between 1,578.61 and 1,603.38 throughout the session.
The overall market breadth was negative with decliners surpassing gainers 719 to 338, while 378 counters were unchanged, 803 untraded and nine others suspended.Total turnover was higher at 4.02 billion units worth RM3.08 billion versus 3.87 billion units worth RM2.99 billion on Friday.
Rakuten Trade Sdn Bhd vice president of equity research Thong Pak Leng said key regional markets were also in negative territory due to the ongoing uncertainty created by political tensions between Russia and Ukraine.
Japan's Nikkei 225 slipped 0.78% to 26,910.87, Hong Kong’s Hang Seng Index went down 0.65% to 24,170.07, Singapore’s Straits Times Index added 0.22% to 3,436.36 and South Korea’s Kospi fell 0.03% to 2,743.8.
“Meanwhile scepticism about the outlook for monetary policy also continued to weigh on the markets ahead of an anticipated interest rate hike by the United States Federal Reserve next month,” he said.
On the domestic front, he said the FBM KLCI had a major correction due to the overbought situation previously, nonetheless, sentiment on the local bourse is believed to be still positive buoyed by the influx of foreign funds.
“Following the correction today, we anticipate the benchmark index to trend within the 1,575-1,600 range for the week with immediate support at 1,570 and resistance at 1,610,” he said.
Bursa heavyweights Malayan Banking Bhd added 14 sen to RM8.80, Public Bank Bhd fell two sen to RM4.37, Petronas Chemicals Group Bhd declined nine sen to RM9.12, IHH Healthcare Bhd shrank 16 sen to RM6.39 and CIMB Group Holdings Bhd eased three sen to RM5.57.
As for the actives, SMTrack Bhd gained two sen to 26 sen, Ta Win Holdings Bhd shed half-a-sen to 18 sen, Dagang NeXchange Bhd fell nine sen to RM1.18 and KNM Group Bhd was unchanged at 18 sen.
On the index board, FBM ACE weakened 124.87 points to 6,169.89, FBM 70 reduced 108.95 points to 13,635.79, FBM Emas Index dropped 129.74 points to 11,321.77, FBMT 100 Index gave up 129.64 points to 10,995.51, while FBM Emas Shariah Index slipped 218.46 points to 11,992.25.
Sector-wise, the Financial Services Index increased 14.17 points to 16,414.85, the Industrial Products and Services Index was 3.8 points lower at 207.83, while the Plantation Index slid 334.41 points to 7,785.82.
The Main Market volume increased to 2.8 billion shares worth RM2.78 billion from 2.58 billion shares worth RM2.72 billion previously.
Warrants turnover weakened to 297.74 million units worth RM32.77 million against 373.25 million units worth RM49.52 million on Friday.
The ACE Market volume widened to 919.17 million shares valued at RM266.95 million versus 911.6 million shares valued at RM222.7 million.
Consumer products and services counters accounted for 493.48 million shares traded on the Main Market, industrial products and services (843.17 million), construction (103.9 million), technology (379.29 million), SPAC (nil), financial services (71.07 million), property (296.39 million), plantation (128.85 million), REITs (8.97 million), closed/fund (15,300), energy (315.68 million), healthcare (50.41 million), telecommunications and media (33.36 million), transportation and logistics (44.97 million), and utilities (27.15 million).
Source: The Edge
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