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 7): Bursa Malaysia’s benchmark index ended slightly lower after trading in a range-bound mode as selling interspersed with buying of selected heavyweights, mainly plantation, banking and oil and gas stocks, dealers said.
At 5pm on Thursday (April 7), the benchmark FBM KLCI was 3.93 points, or 0.24%, lower at 1,600.79, compared with Wednesday's close at 1,604.72.
The key index opened 0.79 of a point better at 1,605.51 and moved between 1,597.95 and 1,606.13 throughout the day.
On the broader market, advancers thumped decliners 597 to 422, while 422 counters were unchanged, 830 untraded and 16 others suspended.Total turnover decreased to 3.34 billion units worth RM2.54 billion from 3.43 billion units worth RM2.47 billion on Wednesday.
A dealer noted that the local bourse opened marginally higher but retreated thereafter, taking its cue from weaker global markets after the US Federal Open Market Committee reiterated its hawkish stance in its latest meeting minutes.
“The US Federal Reserve (Fed), in the latest minutes, revealed its plans to hike interest rates and pare its balance sheet by more than US$1 trillion (about RM4.22 trillion) a year. This raised concerns about the risks the action could imply to economic growth, which sparked volatility in the market,” he said.
Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng told Bernama that key regional indices were also in the red following the overnight selldown on Wall Street, with Japanese and Hong Kong markets plunging on the Fed’s minutes and plans to tackle US inflation, which is running at a four-decade high and threatening to limit the nation’s economic growth.
“On the domestic front, we believe the 1,600-point level will remain a critical factor to determine the near-term outlook for the benchmark index. If the KLCI is able to sustain [itself] above the 1,600 mark for a longer period, we reckon the outlook for the benchmark index will be positive in the midterm.
“As for now, we advise investors to stay alert to the increasing market risks and volatility and external uncertainties. Hence, we expect the KLCI to trade within the 1,590 to 1,610 range towards the weekend,” he added.
Regionally, Hong Kong's Hang Seng Index fell 1.23% to 21,808.98, Japan's Nikkei 225 declined 1.69% to 26,888.57, Singapore’s Straits Times Index shed 0.55% to 3,404.23 and South Korea’s KOSPI slipped 1.43% to 2,695.86.
On the local front, among the heavyweights, Malayan Banking Bhd (Maybank) fell six sen to RM8.83 and Public Bank Bhd shed three sen to RM4.68.
Petronas Chemicals Group Bhd rose 19 sen to RM10.18, IHH Healthcare Bhd added two sen to RM6.41 and CIMB Group Holdings Bhd gained four sen to RM5.35.
Of the actives, Malaysia Building Society Bhd (MBSB) and SMTrack Bhd added 1.5 sen each to 65.5 sen and 9.5 sen respectively, Techna-X Bhd and Vizione Holdings Bhd gained one sen each to 9.5 sen and seven sen respectively, while Metronic Global Bhd edged up half a sen to two sen.
On the index board, the FBMT 100 Index dipped 48.48 points to 11,153.13, the FBM Emas Index was 50.18 points lower at 11,499.86 and the FBM Emas Shariah Index gave up 64.86 points to 12,134.55.
The FBM 70 tumbled 146.28 points to 13,935.37 and the FBM ACE lost 41.96 points to 5,828.32.
Sector-wise, the Financial Services Index shed 26.31 points to 16,769.44 and the Industrial Products and Services Index eased 0.07 of a point to 211.56, but the Plantation Index rose 19.22 points to 8,336.76
Main Market volume rose to 2.33 billion shares worth RM2.32 billion, compared with 2.3 billion shares worth RM2.17 billion on Wednesday.
Warrant turnover surged to 429.53 million units valued at RM74.16 million against 378.19 million units valued at RM65.38 million on Wednesday.
ACE Market volume decreased to 578.69 million shares worth RM146.16 million versus 745.34 million shares worth RM227.69 million previously.
Consumer products and services counters accounted for 410.05 million shares traded on the Main Market, followed by industrial products and services (560.83 billion), construction (238.8 million), technology (193.31 million), special purpose acquisition companies (nil), financial services (188.98 million), property (318.42 million), plantation (54.25 million), real estate investment trusts (10.96 million), closed/funds (114,800), energy (214.97 million), healthcare (55.57 million), telecommunications and media (31.17 million), transportation and logistics (32.04 million), and utilities (17.22 million).
Source: The Edge
Comments
Post a Comment