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 17): Bursa Malaysia ended lower on Friday (Feb 17), joining the global selldown of equities, as the US interest rate outlook strengthens.
At 5pm, the benchmark FBM KLCI had shed 7.36 points, or 0.5%, to end at 1,476.90, compared with Thursday's close at 1,484.26.
The key index opened 0.23 of a point lower at 1,484.03, and moved between 1,473.15 and 1,484.76 throughout the trading day.
On the broader market, decliners led gainers 627 to 282, while
414 counters were unchanged, 902 untraded, and 36 others suspended.
Turnover decreased to 3.27 billion units worth RM2.10 billion, against Thursday's 4.56 billion units worth RM2.55 billion.
SPI Asset Management managing director Stephen Innes reckoned that sticky inflation in both the consumer products and services indices had investors running scared that the US Federal Reserve (Fed) will need to move interest rates higher and longer, spurring big demand for the greenback.
He said higher US interest rates and a stronger greenback typically blunt global risk-taking in stock markets, which is even more pronounced in Asia.
“Hence with hawkish Fed sentiment building, we have seen stocks trade lower today (Friday) as well as regional peers. Unfortunately for local investors, this could continue as markets fully price in another Fed rate hike in June,” he told Bernama.
Bursa heavyweight counters Malayan Banking Bhd (Maybank) at RM8.75 and Public Bank Bhd at RM4.15 had dropped by two sen each, while CIMB Group Holdings Bhd lost three sen to RM5.40 a share. Tenaga Nasional Bhd shed one sen to RM9.89, while Petronas Chemicals Group Bhd rose eight sen to RM8.28.
As for the active stocks, MyEG Services Bhd dropped 2.5 sen to 66 sen, and Top Glove Corp Bhd fell two sen to 82 sen. Minda Global Bhd added one sen to 8.5 sen, SMRT Holdings Bhd gained six sen to 29.5 sen, and Zen Tech International Bhd rose half a sen to four sen.
On the index board, the FBM Emas Index slid 73.52 points to 10,742.16, and the FBMT 100 Index dropped 71.02 points to 10,410.24. The FBM Emas Shariah Index trimmed 74.80 points to 11,102.48, the FBM 70 Index fell 174.55 points to 13,525.43, and the FBM ACE Index eased 89.89 points to 5,659.66.
Sector-wise, the Financial Services Index dipped 83.77 points to 16,036.22, the Plantation Index reduced by 64.02 points to 6,837.68, and the Energy Index weakened by 17.36 points to 883.84. The Industrial Products and Services Index improved by 0.06 of a point to 190.52
The Main Market volume shrank to 2.14 billion shares worth RM1.75 billion, compared with Thursday’s 2.96 billion shares worth RM1.99 billion.
Warrant turnover narrowed to 304.64 million units worth RM44.58 million, from 556.92 million units worth RM83.58 million on Thursday.
The ACE Market volume decreased to 821.09 million shares worth RM301.0 million, from 1.04 billion shares worth RM469.63 million previously.
Consumer product and service counters accounted for 341.10 million shares traded on the Main Market, followed by industrial products and services (614.42 million), construction (78.35 million), technology (398.62 million), special purpose acquisition companies (nil), financial services (73.71 million), property (141.23 million), plantation (47.72 million), real estate investment trusts (6.54 million), closed/funds (58,700), energy (188.54 million), healthcare (127.61 million), telecommunications and media (32.59 million), transportation and logistics (79.19 million), and utilities (15.89 million).
Source: The Edge
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