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 15): Bursa Malaysia ended in the negative territory in tandem with heavy selling across the region as investors tread cautiously amid a hawkish tone on the global interest rate hike, an analyst said.
At 5pm, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) declined by 1.08% or 16.04 points to 1,467.13 from Wednesday's closing of 1,483.17.
The barometer index, which opened 1.39 points lower at 1,481.78, moved in a declining mode between 1,466.25 and 1,482.11 during the day.
On the broader market, decliners thumped advancers 584 versus 307,
while 402 counters were unchanged, 980 untraded, and 41 others
suspended.
Turnover improved slightly to 2.54 billion units worth RM1.91 billion against 2.51 billion units worth RM1.90 billion on Wednesday.
Rakuten Trade Sdn Bhd vice president of equity research Thong Pak Leng told Bernama that regional key indices closed mostly lower amid lingering concerns about inflation and the prospect of aggressive rate hikes.
In addition, he said rising Covid-19 cases in China also weighed on market sentiment.
Nevertheless, on the home front, he said the selldown may offer the opportunity to bargain hunt for stocks at lower levels.
"We anticipate the FBM KLCI to trend sideways towards the weekend, within the range of between 1,465 and 1,485," he said.
Among Bursa Malaysia heavyweights, Malayan Banking Bhd (Maybank) lost seven sen to RM8.70, Public Bank Bhd dropped six sen to RM4.38, Petronas Chemicals Group Bhd eased four sen to RM8.46, CIMB Group Holdings Bhd trimmed eight sen to RM5.75, and Tenaga Nasional Bhd (TNB) fell 13 sen to RM9.21.
Among the actives, Advance Synergy Bhd gained 1.5 sen to 19 sen, PT Resources Holdings Bhd rose 6.5 sen to 57.5 sen, Nylex (Malaysia) Bhd was 6.5 sen higher at 28 sen, while Top Glove Corp Bhd fell five sen to 73.5 sen, and Pesona Metro Holdings Bhd went down two sen to 20 sen.
On the index board, the FBM Emas Index dipped 101.81 points to 10,550.9, the FBMT 100 Index declined 105.71 points to 10,250.91, while the FBM Emas Shariah Index slid 113.13 points to 10,669.78.
The FBM 70 Index slipped 107.86 points to 12,922.67, and the FBM ACE Index shed 39.4 points to 5,471.59.
Sector-wise, the Financial Services Index shaved off 134.07 points to 16,535.5, the Plantation Index lost 36.48 points to 6,704.41, the Industrial Products and Services Index eased 0.36 of-a-point to 181.02, and the Energy Index gave up 0.76 of-a-point to 794.6.
The Main Market volume rose slightly to 1.57 billion shares worth RM1.55 billion versus 1.52 billion shares worth RM1.55 billion on Wednesday.
Warrants turnover increased to 283.83 million units valued at RM59.64 million from 268.73 million units valued at RM65.2 million.
The ACE Market volume dropped to 676.83 million shares worth RM299.49 million against 723.65 million shares worth RM284.05 million previously.
Consumer products and services counters accounted for 431.06 million shares traded on the Main Market, industrial products and services (413.53 million), construction (70.76 million), technology (185.47 million), SPAC (nil), financial services (67.16 million), property (80.62 million), plantation (28.53 million), REITs (5.22 million), closed/fund (15,300), energy (98.93 million), healthcare (85.88 million), telecommunications and media (56.19 million), transportation and logistics (38.69 million), and utilities (10.83 million).
Source: The Edge
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