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 8): Bursa Malaysia erased earlier gains to end at the day’s low on Wednesday (June 8), extending its losses for the fifth consecutive day, on last-minute selling in selected heavyweights as investors remained cautious ahead of the release of a series of global economic data, dealers said.
At 5pm, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) closed 2.07 points weaker at 1,523.86, from Tuesday’s close of 1,525.93.
The index, which opened 0.03 points easier at 1,525.90, hit a high of 1,532.72 in the morning session.
On the broader market, losers thumped gainers 524 to 388, while 398 counters were unchanged, 964 untraded, and nine others suspended.
Total turnover increased to 3.26 billion units worth RM1.96 billion compared with 2.62 billion units worth RM1.78 billion on Tuesday.
A dealer said the local bourse opened easier on Tuesday morning but rebounded thereafter to remain in positive territory for most of the day before succumbing to last-minute selling in selected heavyweights stocks.
Rakuten Trade Sdn Bhd vice president of equity research Thong Pak Leng told Bernama that sentiment remained fragile as investors were cautious on uncertainties such as global recession, inflation and rising interest rates.
Meanwhile, key regional markets ended mostly positive following the upbeat performance on Wall Street overnight, he said.
However, he noted that Chinese equities were marginally higher Wednesday as investors were awaiting the release of China’s Consumer Price Index (CPI) which is due on Friday, while strong buying in Chinese technology shares pushed Hong Kong sharply higher.
"On the domestic front, despite the cautious market undertone, we expect bargain hunting will prevail given the cheap valuations of local stocks, continuous inflow of foreign investors and improving macroeconomic situation in the country.
"As such, we expect the FBM KLCI to trend slightly higher within the 1,520-1,540 region for the remainder of the week, with immediate resistance at 1,575 and support at 1,520," he added.
Regionally, Singapore’s Straits Times Index shed 0.2% to 3,225.23, Japan’s Nikkei 225 gained 1.04% to 28,234.29, Hong Kong’s Hang Seng rose 2.24% to 22,014.59, South Korea’s KOSPI eased 0.01% to 2,626.15, and China's SSE Composite Index added 0.68% to 3,263.79.
Among the heavyweights, Public Bank Bhd added five sen to RM4.57, IHH Healthcare Bhd gained three sen to RM6.53, CIMB Group Holdings Bhd climbed one sen to RM5.07, Petronas Chemicals Group Bhd shed one sen at RM9.85, while Malayan Banking Bhd was flat at RM8.84.
Of the actives, Dynaciate Bhd slid 2.5 sen to 14.5 sen, Dynaciate-warrant eased four sen to 4.5 sen, ACE Market debutant LGMS Bhd soared 34.5 sen to 84.5 sen, MNC Wireless Bhd edged up half-a-sen to two sen, while BCM Alliance Bhd was flat at 2.5 sen.
On the index board, the FBM Emas Index was 8.59 points lower at 10,932.99, the FBMT 100 Index shed 7.25 points to 10,622.31, the FBM Emas Shariah Index slipped 43.41 points to 11,233.38, the FBM ACE was down 15.78 points to 5,234.1, but the FBM 70 increased 19.83 points to 13,292.11.
Sector-wise, the Financial Services Index rose 32.33 points to 16,579.11, the Plantation Index increased 24.86 points to 7,811.78, while the Industrial Products and Services Index was 0.87 of-a point easier at 196.26.
Main Market volume was unchanged at 1.71 billion shares worth RM1.55 billion against 1.71 billion shares worth RM1.56 billion on Tuesday.
Warrants turnover jumped to 539.76 million units valued at RM94.67 million versus 412.99 million units valued at RM75.26 million on Tuesday.
ACE Market volume surged to 1.01 billion shares worth RM317.92 million from 494.63 million shares worth RM138.17 million previously.
Consumer products and services counters accounted for 265.79 million shares traded on the Main Market, industrial products and services (690 million), construction (52.65 million), technology (110.75 million), SPAC (nil), financial services (44.56 million), property (135.22 million), plantation (34.41 million), REITs (9.52 million), closed/fund (4,000), energy (198.8 million), healthcare (76.97 million), telecommunications and media (22.02 million), transportation and logistics (48.59 million), and utilities (17.5 million).
Source: The Edge
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