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 (Nov 16): Bursa Malaysia extended its loss on Wednesday (Nov 16) amid a weaker regional market performance, and as cautious investors offloaded shares ahead of the 15th general election (GE15), a dealer said.
At 5pm, the benchmark FBM KLCI had dipped 2.16 points, or 0.15%, to end at 1,448.38, which was also the index's intraday high, from Tuesday’s close at 1,450.54.
The market bellwether opened 3.04 points easier at 1,447.50, and hit an intraday low of 1,440.59 at midday.
On the broader market, decliners outpaced gainers 493 to 351, while
401 counters were unchanged, 1,080 untraded, and 13 others suspended.
Turnover eased to 2.32 billion units valued at RM1.71 billion, versus 2.78 billion units valued at RM1.68 billion on Tuesday.
Malacca Securities Sdn Bhd senior analyst Kenneth Leong told Bernama the KLCI remained downbeat due to selling pressure on selected heavyweight banking, plantation and glove stocks.
"Looking ahead, we reckon that the fragile sentiment may continue, as we approach the end of the holiday-shortened trading week ahead of the GE15.
"For now, the key focus is on the outcome of the GE15, while externally, investors will be keeping an eye on US manufacturing and industrial production data," he said, adding that technically, the immediate resistance level is seen at 1,465, while support is located at 1,440.
He also attributed the weakness in the region’s stock markets to escalating geopolitical tensions, after a Russian-made rocket landed and claimed two lives in eastern Poland, near Ukraine.
Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng reckoned that investors were waiting for further developments on the geopolitical front for direction for investment decisions, both globally and regionally.
"On the domestic front, we expect some bargain-hunting activities to emerge due to the current cheap valuations. Last-minute buying may happen before the market closes on the last trading day before the election day. It happened before in previous elections," he noted.
As such, he anticipates the KLCI to trend within the range of 1,440 to 1,460 on Thursday.
On the local bourse, heavyweights Malayan Banking Bhd (Maybank) gained one sen to RM8.51, Public Bank Bhd lost seven sen to RM4.30, and CIMB Group Holdings Bhd shed six sen to RM5.35. IHH Healthcare Bhd eased one sen to RM5.95, while Petronas Chemicals Group Bhd was flat at RM8.62.
Among the actives, Advance Synergy Bhd inched down by half a sen to 12 sen, Top Glove Corp Bhd slipped one sen to 96 sen, and Malaysia Steel Works (KL) Bhd added 9.5 sen to 36 sen. Hiap Teck Venture Bhd climbed up two sen to 26.5 sen, and Tanco Holdings Bhd improved four sen to 35 sen.
On the index board, the FBM Emas Index dipped 20.71 points to 10,294.96, the FBMT 100 Index gave up 21.11 points to 10,023.86, and the FBM 70 lost 50.52 points to 12,254.05. The FBM ACE dropped 15.95 points to 4,997.17.
However, the FBM Emas Shariah Index was up by 8.84 points to 10,452.81.
Sector-wise, the Financial Services Index dropped 82.42 points to 16,089.31, the Energy Index slid 5.33 points to 720.10, and the Plantation Index narrowed 29.26 points to 6,902.20. The Industrial Products and Services Index rose 0.11 of a point to 178.77.
The Main Market volume retreated to 1.64 billion shares worth RM1.52 billion, from 1.82 billion shares worth RM1.44 billion on Tuesday.
Warrant turnover declined to 317.42 million units valued at RM60.02 million, from 424.43 million units valued at RM71.52 million.
The ACE Market volume was cut down to 356.42 million shares worth RM127.41 million, from 538.95 million shares worth RM165.33 million previously.
Consumer product and service counters accounted for 371.83 million shares traded on the Main Market, followed by industrial products and services (567.28 million), construction (44.12 million), technology (121.90 million), special purpose acquisition companies (nil), financial services (73.88 million), property (135.84 million), plantation (14.87 million), real estate investment trusts (6.03 million), closed/funds (17,700), energy (131.50 million), healthcare (109.81 million), telecommunications and media (21.41 million), transportation and logistics (31.46 million), and utilities (12.65 million).
Source: The Edge
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