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 (June 15): Bursa Malaysia reversed Tuesday's (June 14) gains to end lower across the board on profit-taking after a sharp rise as investors remained in a cautious mode, a dealer said.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) declined 22.23 points, or 1.5% to 1,459.05 from Tuesday's close of 1,481.28.
The barometer index, which opened 0.4 of-a-point lower at 1,480.88, moved between 1,453.19 and 1,480.96 throughout the day.
On the broader market, losers thumped gainers 731 to 231, while 383 counters were unchanged, 934 untraded, and nine others suspended.
Total turnover narrowed to 2.43 billion units worth RM1.82 billion from 2.72 billion units worth RM2.11 billion on Tuesday.
Rakuten Trade Sdn Bhd vice president of equity research Thong Pak Leng expects investor sentiment to remain soft due to external factors such as market risks and volatility in global markets amid multi-year high inflation in the United States.
"A potential aggressive interest hike by the US Federal Reserve ahead of the Federal Open Market Committee (FOMC) meeting today may put the world's largest economy into recession," he told Bernama.
Thong further noted that for the local bourse, the FBM KLCI remained in an oversold position after heavy sell-downs in the past two weeks.
Among the heavyweights, Malayan Banking Bhd fell five sen to RM8.63, Public Bank Bhd lost three sen to RM4.48, Petronas Chemicals Group Bhd dipped 13 sen to RM9.53, and IHH Healthcare Bhd decreased 11 sen to RM6.19.
Of the actives, Sapura Energy Bhd gained half-a-sen to five sen, both MQ Technology Bhd and MNC Wireless Bhd shed half-a-sen to four sen and 1.5 sen, respectively, Unitrade Industries Bhd eased 1.5 sen to 28.5 sen, and Dagang NeXchange Bhd lost 3.5 sen to 87.5 sen.
On the index board, the FBM Emas Index was 139.81 points lower at 10,431.76, the FBM Emas Shariah Index dipped 186.03 points to 10,617.18, the FBM 70 slipped 82.19 points to 12,639.35, the FBM ACE trimmed 50.91 points to 4,888.67, and the FBMT 100 Index decreased 133.86 points to 10,154.03.
Sector-wise, the Financial Services Index dropped 85.83 points to 16,168.07, the Plantation Index declined 167.81 points to 7,382.5, and the Industrial Products and Services Index was 3.09 points easier at 187.35.
Main Market volume shrank to 1.39 billion shares worth RM1.6 billion from 1.57 billion shares worth RM1.82 billion on Tuesday.
Warrants turnover narrowed to 437.06 million units valued at RM77.75 million against 446.63 million units valued at RM82.25 million on Tuesday.
ACE Market volume dwindled to 594.64 million shares worth RM141.12 million from 705.26 million shares worth RM211.23 million previously.
Consumer products and services counters accounted for 202.91 million shares traded on the Main Market, industrial products and services (318 million), construction (48.37 million), technology (139.63 million), SPAC (nil), financial services (55.42 million), property (90.78 million), plantation (32.65 million), REITs (6.48 million), closed/fund (12,000), energy (332.42 million), healthcare (95.4 million), telecommunications and media (27.16 million), transportation and logistics (24.77 million), and utilities (18.95 million).
Source: The Edge
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