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 (April 6): Bursa Malaysia ended on a firmer note on strong buying support for selected heavyweights, led by plantation and banking stocks, bucking the downtrend among regional peers.
At 5pm on Wednesday (April 6), the benchmark FBM KLCI was 7.93 points higher at 1,604.72, compared with Tuesday's close at 1,596.79.
The key index opened 0.67 of a point easier at 1,596.12 and moved between 1,595.19 and 1,605.50 throughout the day.
On the broader market, gainers thumped decliners 601 to 435, while 405 counters were unchanged, 795 untraded and 13 others suspended.
Total turnover decreased to 3.43 billion units worth RM2.46 billion from 3.87 billion units worth RM2.37 billion on Tuesday.
A dealer noted that Bursa had stayed upbeat for the rest of the day, bucking the downtrend among regional peers.
“Key Asian markets took their cue from the weaker Wall Street after the US Federal Reserve (Fed) reiterated its more aggressive approach in tightening its monetary policy to tame inflation amid the unresolved conflict between Russia and Ukraine.
“Meanwhile, the reopening of borders and high commodity prices helped to support Malaysia's economic recovery path," he said.
Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng told Bernama that the KLCI trended higher on Wednesday as bargain hunting emerged after two days of selldowns, with buying interest mainly seen in plantation, oil and gas and banking heavyweights.
“If the KLCI is able to sustain [itself] above the 1,600 mark for a longer period, the outlook for the benchmark index will be positive in the midterm.
“We believe the benchmark index would stay in consolidation mode for the time being due to cautious sentiment, although foreign buying and bargain-hunting activities may emerge as well.
“As such, we anticipate the KLCI to trend within the 1,590-1.610 range for the remainder of the week,” he said.
He added that investors are now waiting for the release of the minutes from the Fed's policy meeting slated later on Wednesday for the latest insights into US monetary policy and its plan to reduce the balance sheet.
Regionally, Hong Kong's Hang Seng Index fell 1.87% to 22,080.52, Japan's Nikkei 225 declined 1.58% to 27,350.30, Singapore’s Straits Times Index shed 0.64% to 3,422.93 and South Korea’s KOSPI eased 0.88% to 2,735.03.
On the local front, heavyweights Malayan Banking Bhd (Maybank) rose three sen to RM8.89, Public Bank Bhd added one sen to RM4.71, Petronas Chemicals Group Bhd and IHH Healthcare Bhd rose 14 sen each to RM9.99 and RM6.39 respectively, while CIMB Group Holdings Bhd gained four sen to RM5.31.
Of the actives, Dagang NeXchange Bhd (DNeX) eased one sen to RM1.10, Vizione Holdings Bhd edged up half a sen to six sen and MyEG Services Bhd added one sen to RM1.03, while Techna-X Bhd and AT Systematization Bhd were flat 8.5 sen and two sen respectively.
On the index board, the FBMT 100 Index expanded 52.55 points to 11,201.61, the FBM Emas Index added 56.42 points to 11,550.04, the FBM Emas Shariah Index advanced 59.43 points to 12,199.41, FBM 70 rose 54.63 points to 14,081.65 and FBM ACE improved 5.76 points to 5,870.28.
Sector-wise, the Industrial Products and Services Index inched up 1.83 points to 211.63, the Financial Services Index soared 75.79 points to 16,795.75 and the Plantation Index surged 144.27 points to 8,317.54.
Main Market volume fell to 2.3 billion shares worth RM2.17 billion, compared with 2.85 billion shares worth RM2.11 billion on Tuesday.
Warrant turnover surged to 378.19 million units valued at RM65.38 million against 132.61 million units valued at RM13.61 million the day before.
ACE Market volume decreased to 745.34 million shares worth RM227.69 million versus 884.44 million shares worth RM237.34 million previously.
Consumer products and services counters accounted for 334.41 million shares traded on the Main Market, followed by industrial products and services (580.58 billion), construction (204.06 million), technology (365.94 million), special purpose acquisition companies (nil), financial services (102.91 million), property (237.24 million), plantation (66.36 million), real estate investment trusts (7.90 million), closed/funds (600), energy (245.88 million), healthcare (59.56 million), telecommunications and media (25.52 million), transportation and logistics (43.64 million), and utilities (24.65 million).
Source: The Edge
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