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 10): Bursa Malaysia ended the week on a weaker note while breaking the 1,500 psychological level on Friday (June 10), dragged down by persistent selling across the board, in tandem with regional peers, a dealer said.
At 5pm, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) closed 15.76 points or 1.04% lower at 1,493.95 from Thursday’s close of 1,509.71.
The benchmark index opened 4.03 points weaker at 1,505.68, which was its day’s high, and hit a low of 1,493.32 in the morning session.
On the broader market, losers thumped gainers 667 to 254, while 400 counters were unchanged, 953 untraded, and 22 others suspended.
Total turnover decreased to 2.26 billion units worth RM1.69 billion compared with 2.88 billion units worth RM2.06 billion on Thursday.
A dealer said Bursa Malaysia was in the red for the whole trading session, in sync with regional peers which took a cue from the overnight steep fall of US stocks and government bonds, ahead of the consumer price index (CPI) data Friday, as investors were expecting high US inflation print.
Rakuten Trade Sdn Bhd vice president of equity research Thong Pak Leng told Bernama that key regional indices were mostly negative except for Chinese stocks as investors remained wary of the potential of more interest rate hikes by the Federal Reserve (Fed).
"Investors expect the Fed to raise its key interest rate next week by half of a percentage point, the second straight increase of double the usual hike, with a third to hit in July.
"The US CPI is expected to sustain above 8% consecutively for the third month and this will keep the odds of a prolonged hawkish stance by the Fed higher," he shared.
Meanwhile, Thong noted that China’s National Bureau of Statistics has reported annual inflation at 2.1%, slightly below estimates of 2.2%, while the producer price index came in within the forecast of 6.4%.
"We believe the market undertone will remain cautious amid the weak global performance although bargain hunting may prevail.
"We also reckon that recent sell-downs would provide opportunities for investors to accumulate stocks at attractive levels given their cheap valuations. As such, we anticipate the index to trend within the 1,490 to 1,510 range for next week, with immediate support at 1,475 and resistance at 1,520," he added.
Regionally, Singapore’s Straits Times Index shed 0.91% to 3,180.42, Japan’s Nikkei 225 slipped 1.49% to 27,824.29, Hong Kong’s Hang Seng eased 0.29% to 21,806.18, and South Korea’s KOSPI decreased 1.13% to 2,595.87.
However, China’s SSE Composite Index rose 1.42% to 3,284.83 while the Shenzhen Component gained 1.9% to 12,035.15.
Among the heavyweights, Malayan Banking Bhd dipped five sen to RM8.75, Public Bank Bhd fell four sen to RM4.53, and CIMB Group Holdings Bhd slid three sen to RM5.04.
Petronas Chemicals Group Bhd added six sen to RM9.70 and IHH Healthcare Bhd put on five sen to RM6.45.
Of the actives, LGMS Bhd improved four sen to 75.5 sen, MQ Technology Bhd inched down half-a-sen to five sen, Top Glove Corp Bhd lost nine sen to RM1.13, while both Borneo Oil Bhd and MNC Wireless Bhd were flat at 2.5 sen and 1.5 sen, respectively.
On the index board, the FBM Emas Index was 108.03 points lower at 10,733.65, the FBM Emas Shariah Index slipped 111.51 points to 10,997.24, the FBM 70 declined 112.61 points to 13,113.58, the FBM ACE shed 35.58 points to 5,134.36 and the FBMT 100 Index decreased 105.15 points to 10,429.35.
Sector-wise, the Financial Services Index dropped 101.58 points to 16,420.13, the Plantation Index lost 68.72 points to 7,596.65 and the Industrial Products and Services Index was 0.71 of-a-point easier at 193.33.
Main Market volume decreased to 1.35 billion shares worth RM1.47 billion against 1.66 billion shares worth RM1.70 billion on Thursday.
Warrants turnover swelled to 400.01 million units valued at RM65.98 million versus 300.45 million units valued at RM55.52 million on Thursday.
ACE Market volume dwindled to 509.05 million shares worth RM158.21 million from 923.57 million shares worth RM302.22 million previously.
Consumer products and services counters accounted for 196.74 million shares traded on the Main Market, industrial products and services (431.19 million), construction (44.64 million), technology (100.97 million), SPAC (nil), financial services (44.42 million), property (125.91 million), plantation (46.12 million), REITs (5.04 million), closed/fund (34,000), energy (183.55 million), healthcare (86.09 million), telecommunications and media (38.66 million), transportation and logistics (25.17 million), and utilities (22.08 million).
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