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 (Feb 8): The FTSE Bursa Malaysia KLCI (FBM KLCI) extended its decline for a second consecutive day, dragged by selling pressure mainly in banking and telecommunication stocks, amid mixed sentiments in regional bourses, a dealer said.
At 5pm, the benchmark FBM KLCI fell 5.63 points or 0.38% to 1,470.75 compared with Tuesday's close of 1,476.38.
The key index opened flat at 1,476.39 and moved between 1,469.01 and 1,479.95 throughout the session.
The market breadth was negative as losers thumped gainers 566 to 371,
while 403 counters were unchanged, 834 untraded and nine others
suspended.
Turnover dwindled to 3.94 billion units worth RM2.51 billion against Tuesday's 5.24 billion units worth RM3.03 billion.
The financial services index dipped 1.12% or 180.77 points to 15,954.56.
Malacca Securities Sdn Bhd senior analyst Kenneth Leong said the weakness in banking heavyweights came about as certain economists pointed out that the monetary tightening by Bank Negara Malaysia (BNM) may have come to an end.
It was reported that Malaysia’s economy is expected to grow at a moderate pace of 4.7% this year amid a gradual decline in inflation, softening monetary policy and subpar commodity prices.
ANZ Bank chief economist, Southeast Asia and India, Sanjay Mathur "anticipates that inflation — which was never a very serious problem in Malaysia — would ease a little more and the combination of growth and inflation bodes well for Malaysia right now".
"Looking ahead, we think that mild bargain-hunting activities may emerge following the recent two-day pullback.
"However, gains may be capped towards the 1,490 to 1,500 level amid the lack of fresh leads until the re-tabling of Budget 2023 on Feb 24," he told Bernama.
Meanwhile, Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said the key regional indices were mixed despite the positive cue from Wall Street overnight as hawkish interest rate guidance by Federal Reserve chair Jerome Powell has escalated fears of a further slowdown in the US and global economy.
As for the local bourse, he believes the selldown offers opportunity to pick up stocks that had taken a severe beating.
"After taking consideration of these factors, we foresee the FBM KLCI to trend higher within the 1,470 to 1,490 range for the remainder of the week.
"From the technical point of view, we spot the immediate resistance at 1,500 while support is at 1,470," he said.
Bursa Malaysia heavyweights Malayan Banking Bhd added one sen to RM8.64, Petronas Chemicals Group Bhd gained 10 sen to RM8.25, and Tenaga Nasional Bhd rose 12 sen to RM9.51, while Public Bank Bhd slid four sen to RM4.12, and CIMB Group Holdings Bhd went down by 18 sen to RM5.40.
As for the actives, Sapura Energy Bhd edged up half-a-sen to five sen, MyEG Services Bhd bagged 1.5 sen to 71.5 sen, Velesto Energy Bhd shed one sen to 23.5 sen, and ATA IMS Bhd slipped 9.5 sen to 35.5 sen, while Ta Win Holdings Bhd was flat at eight sen.
On the index board, the FBM Emas Index shed 34.51 points to 10,739.59, the FBMT 100 Index slipped 31.76 points to 10,406.2, the FBM ACE Index was 46.77 points lower at 5,789.84, and the FBM 70 Index trimmed 7.32 points to 13,689.13.
However, the FBM Emas Shariah Index went up 1.19 points to 11,098.69.
Sector-wise, the Industrial Products and Services Index eased 0.25 of-a-point to 189.98, the Plantation Index narrowed 25.63 points to 6,900.32, and the Energy Index inched down 4.68 points to 893.82.
The Main Market volume decreased to 2.72 billion shares worth RM2.09 billion compared with Tuesday’s 3.77 billion shares worth RM2.63 billion.
Warrants turnover shrank to 266.72 million units worth RM36.69 million from 369.18 million units worth RM46.26 million previously.
The ACE Market volume declined to 954.29 million shares worth RM383.48 million from 1.09 billion shares worth RM348.63 million on Tuesday.
Consumer products and services counters accounted for 271.45 million shares traded on the Main Market, industrial products and services (673.66 million), construction (94.09 million), technology (505.42 million), SPAC (nil), financial services (104.53 million), property (134.57 million), plantation (30.48 million), REITs (10.92 million), closed/fund (44,400), energy (743.27 million), healthcare (64.38 million), telecommunications and media (23.28 million), transportation and logistics (48.74 million), and utilities (16.18 million).
Source: The Edge
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