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 (July 27): The FTSE Bursa Malaysia KLCI (FBM KLCI) rebounded from Tuesday's (July 26) loss to end higher on Wednesday, with the key index advancing by 0.48%, thanks to continuous support from foreign investors amid the cautious sentiment across the region, a dealer said.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 7.02 points to 1,470.71 from Tuesday’s close of 1,463.69.
The index, which opened 0.44 points better at 1,464.13, moved between 1,460.97 and 1,470.96 throughout the day.
On the broader market, gainers outpaced losers 477 to 351, while 391
counters were unchanged, 1,071 untraded, and 20 others suspended.
However, total turnover declined to 2.19 billion units worth RM1.36 billion from 2.41 billion units worth RM1.22 billion on Tuesday.
Rakuten Trade Sdn Bhd vice president of equity research Thong Pak Leng said Malaysian equities closed broadly higher with buying interests mainly in technology, utilities and telecommunication stocks.
"We reckon the uptrend will continue. Hence, we see the benchmark index hovering within the 1,465 to 1,485 range for the remainder of the week.
"On a technical point of view, we see immediate resistance at 1,500 and support at 1,460," he told Bernama.
Meanwhile, the key regional indices closed mixed as investors remained divided over the US Federal Reserve's (Fed) next move amid recession fears. The Fed will announce its decision on the interest rate later on Wednesday night (Malaysian time).
Malacca Securities Sdn Bhd senior analyst Kenneth Leong told Bernama that the interest rate hike news has been priced into the market, “however, if the quantum of the rate hike is not within market expectations, we may expect the market to turn volatile”.
Singapore's Straits Times Index rose 0.41% to 3,205.14, South Korea's KOSPI added 0.11% to 2,415.53, and Japan's Nikkei edged up 0.22% to 27,715.75, while Hong Kong's Hang Seng Index was 1.13% lower at 20,670.04, and China’s SSE Composite Index slid 0.05% to 3,275.76.
Earlier on Wednesday, Tenaga Nasional Bhd’s (TNB) shares eased due to pockets of power outrage but the company managed to fully restore electricity supply to all areas experiencing power outages at 3.02pm.
Meanwhile, among the Bursa heavyweights, Malayan Banking Bhd added one sen to RM8.80, Petronas Chemicals Group Bhd and CIMB Group Holdings Bhd gained two sen each to RM8.64 and RM5.22, respectively, while Public Bank Bhd and TNB were flat at RM4.60 and RM8.03, respectively.
Of the actives, Metronic Global Bhd perked up three sen to 13 sen, UMediC Group Bhd advanced five sen to 49 sen, MY EG Services Bhd slipped one sen to 74.5 sen, while Sapura Energy Bhd and Serba Dinamik Holdings Bhd were both flat at 4.5 sen and 11 sen, respectively.
On the index board, the FBM Emas Index put on 54.23 points to 10,429.98, the FBM Emas Shariah Index gained 72.92 points to 10,494.91, the FBMT 100 Index rose 51.48 points to 10,185.33, the FBM 70 was 74.79 points higher at 12,478.47, and the FBM ACE climbed 49.5 points to 4,779.2.
Sector-wise, the Industrial Products and Services Index was 1.14 points firmer at 178.54, the Financial Services Index improved 70 points to 16,556.02, the Energy Index increased by 4.12 points to 645.2, but the Plantation Index declined 3.46 points to 6,846.3.
Main Market volume fell to 1.56 billion shares worth RM1.19 billion against 1.63 billion shares worth RM1.02 billion on Tuesday.
Warrants turnover shrank to 233.12 million units valued at RM49.73 million versus 369.48 million units valued at RM66.36 million on Tuesday.
ACE Market volume decreased to 390.66 million shares worth RM125.68 million from 409.45 million shares worth RM135.7 million previously.
Consumer products and services counters accounted for 135.03 million shares traded on the Main Market, industrial products and services (666.09 million), construction (77.49 million), technology (202.72 million), SPAC (nil), financial services (36.67 million), property (75.04 million), plantation (22.39 million), REITs (3.84 million), closed/fund (10,000), energy (231.03 million), healthcare (60 million), telecommunications and media (15.88 million), transportation and logistics (19.9 million), and utilities (17.16 million).
Source: The Edge
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