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 2): Bursa Malaysia reversed Tuesday's (Nov 1) losses to close in the positive territory on Wednesday in line with the strong performance on regional peers on hopes the US Federal Reserve will be less aggressive on the interest rates hike.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) ticked up 5.69 points to 1,451.61 from Tuesday's close of 1,445.92.
The key index, which opened 5.06 points higher at 1,450.98, moved between 1,442.89 and 1,451.92 throughout the day.
The broader market was also positive with gainers beating gainers 487 to 340, while 442 counters were unchanged, 1,049 untraded, and 13 others suspended.
Turnover was marginally lower at 2.49 billion units valued at RM1.78 billion versus 2.98 billion units valued at RM1.56 billion on Tuesday.
SPI Asset Management managing partner Stephen Innes said it was a relatively quiet trading session on Wednesday as local investors pinned their hopes on the Fed being less hawkish in its interest rates decision on Wednesday night with forward guidance after the rate hike.
A softer Fed stance would be very positive for Malaysian stocks and the currency.
“There is some mild optimism that China may open borders sooner than expected but we are still waiting for official confirmation.
“So the market is really on a holding pattern ahead of tonight's FOMC [outcome] where a 75 basis points (bps) hike is expected but the question now is what will the Fed do in December and beyond,” he told Bernama.
Asian shares wobbled in cautious trading on Wednesday as investors braced for the Fed's policy outcome with many looking for any signs of a slowdown in future rate hikes.
Back home, analysts said local investors were also awaiting the outcome of Bank Negara Malaysia's (BNM) monetary policy committee meeting on Wednesday and Thursday, wherein the markets anticipated that the central bank may look to hike the overnight policy rate by 25bps.
On the local bourse, heavyweights Malayan Banking Bhd (Maybank) was flat at RM8.54 while Tenaga Nasional Bhd was unchanged at RM8.40, Public Bank Bhd rose four sen to RM4.45, Petronas Chemicals Group Bhd added two sen to RM8.65, and CIMB Group Holdings Bhd gained one sen to RM5.49.
Among the actives, KNM Group Bhd increased half-a-sen to 4.5 sen, Solution Group Bhd went up two sen to 30 sen, Widad Group Bhd was flat at 40.5 sen while Advance Synergy Bhd was unchanged at seven sen, and Hibiscus Petroleum Bhd fell one sen to 98.5 sen.
On the index board, the FBM Emas Index was 30.31 points higher at 10,297.44, the FBMT 100 increased 28.72 points to 10,030.85, the FBM Emas Shariah advanced 31.97 points to 10,367.67, the FBM ACE garnered 75.82 points to 4,953.84, and the FBM 70 erased 7.73 points to 12,200.85.
Sector-wise, the Industrial Products and Services Index edged up 0.15 of-a-point to 174.82, the Plantation Index expanded 43.76 points to 6,836.69, the Financial Services Index perked up 13.8 points to 16,326.1 while the Energy Index was 14.83 points higher at 710.33.
The Main Market volume dwindled to 1.66 billion shares worth RM1.52 billion from 2.03 billion shares worth RM1.30 billion on Tuesday.
Warrants turnover declined to 253.71 million units valued at RM48.42 million from 419.53 million units valued at RM81.75 million.
The ACE Market volume climbed to 573.93 million shares worth RM212.18 million from 526.71 million shares worth RM189.21 million previously.
Consumer products and services counters accounted for 303.24 million shares traded on the Main Market, industrial products and services (388.25 million), construction (53.43 million), technology (122.69 million), SPAC (nil), financial services (68.79 million), property (216.64 million), plantation (47.79 million), REITs (5.02 million), closed/fund (28,500), energy (247.33 million), healthcare (122.47 million), telecommunications and media (15.87 million), transportation and logistics (62.25 million), and utilities (8.65 million).
Source: The Edge
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