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 (Dec 2): Bursa Malaysia retreated after two days of gains to end easier on Friday (Dec 2), with the key index falling by 0.65%, on lack of buying interest in large-cap stocks as risk appetite shifted to smaller cap companies, particularly real estate investment trust and energy stocks.
At 5pm, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) dipped 9.71 points to 1,481.8 from Thursday's closing of 1,491.51.
The market bellwether opened 2.15 points easier at 1,489.36 and moved within a narrow range at between 1,479.7 and 1,489.36 throughout the day.
However, market breadth was positive with gainers beating losers 541
to 406, while 416 counters were unchanged, 870 untraded, and 14 others
suspended.
Turnover decreased to 3.35 billion units worth RM2.28 billion versus 3.94 billion units worth RM3.07 billion on Thursday.
Rakuten Trade Sdn Bhd vice president of equity research Thong Pak Leng said key regional markets were also in the negative territory as investors were wary ahead of the US non-farm payroll data due out on Friday.
"Additionally, uncertainty over the direction of US inflation also weighed on investor sentiment.
"Back home, investors are trading cautiously ahead of the announcement of a new Cabinet by Prime Minister Datuk Seri Anwar Ibrahim," he told Bernama.
Nonetheless, Rakuten Trade believes the valuations of Malaysian equities remained undervalued and this would provide opportunities for investors to bargain for stocks at a lower level.
Meanwhile, Malacca Securities Sdn Bhd senior analyst Kenneth Leong said the FBM KLCI nudged lower on profit taking after half of the key index components retreated ahead of the announcement of the Cabinet line-up later on Friday.
Region-wise, Hong Kong's Hang Seng Index fell 0.33% to 18,675.35, the Shanghai Composite Index eased 0.29% to 3,156.14, and the Shenzhen Index decreased 0.39% to 11,219.79.
Elsewhere in the region, Japan's Nikkei 225 dipped 1.59% to 27,777.9 and Singapore's Straits Times Index shed 0.89% to 3,263.34.
Among heavyweights, Malayan Banking Bhd (Maybank) fell four sen to RM8.58, Public Bank Bhd slid six sen to RM4.41, Petronas Chemicals Group Bhd slipped 15 sen to RM8.52, CIMB Group Holdings Bhd declined 11 sen to RM5.64, and Tenaga Nasional Bhd went down 12 sen to RM9.38.
Of the actives, Advance Synergy Bhd rose 1.5 sen to 19 sen, MQ Technology Bhd was half-a-sen higher at 5.5 sen, Infomina Bhd gained half-a-sen to 82.5 sen, Malayan United Industries Bhd increased half-a-sen to 8.5 sen, and Velesto Energy Bhd bagged one sen to 16 sen.
Meanwhile, Bursa Malaysia Securities Bhd in a statement on Friday announced that the trading suspension of Comintel Corporation Bhd securities will be uplifted with effect from 9am on Monday, Dec 5, 2022, to facilitate the listing of the placement shares and the completion of the company’s regularisation plan.
On the index board, the FBM Emas Index decreased 41.27 points to 10,653.2, the FBMT 100 Index fell 48.09 points to 10,357.15, while the FBM Emas Shariah Index was 25.35 points lower at 10,877.91.
The FBM 70 rose 17.92 points to 13,071.19, and the FBM ACE garnered 74.92 points to 5,365.89.
Sector-wise, the Financial Services Index sank 120.44 points to 16,446.42, the Industrial Products and Services Index eased 1.42 points to 181.82, and the Plantation Index dropped 13.44 points to 6,807.85, while the Energy Index added 14.8 points to 800.11.
The Main Market volume decreased to 2.22 billion shares worth RM1.92 billion against 2.36 billion shares worth RM2.49 billion on Thursday.
Warrants turnover shrank to 235.54 million units valued at RM39.49 million from 433.85 million units valued at RM74.16 million.
The ACE Market volume dwindled to 889.48 million shares worth RM320.66 million from 1.15 billion shares worth RM504.39 million previously.
Consumer products and services counters accounted for 498.86 million shares traded on the Main Market, industrial products and services (473.04 million), construction (69.63 million), technology (231.73 million), SPAC (nil), financial services (84.72 million), property (211.83 million), plantation (22.66 million), REITs (10.45 million), closed/fund (39,500), energy (414.35 million), healthcare (92.49 million), telecommunications and media (27.14 million), transportation and logistics (55.21 million), and utilities (28.39 million).
Source: The Edge
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