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...
Market Daily Report: Bursa ends marginally higher as investors stay on sidelines ahead of Budget 2023
KUALA LUMPUR (Feb 21): Bursa Malaysia ended marginally higher on Tuesday (Feb 21), as investors stayed on the sidelines, ahead of the retabling of Budget 2023 on Friday.
At 5pm, the benchmark FBM KLCI had inched up 0.55 of a point or 0.04% to end at 1,474.01, compared with Monday's close at 1,473.46.
The key index opened 0.65 of a point higher at 1,474.11, and moved between 1,471.85 and 1,477.36 throughout the trading day.
On the broader market, decliners outpaced gainers 621 to 316, while
382 counters were unchanged, 905 untraded, and 11 others suspended.
Turnover increased to 3.38 billion units worth RM1.85 billion, from Monday's 3.14 billion units worth RM2.14 billion.
A dealer said trading on the local bourse was lacklustre while investors waited for the retabling of Budget 2023 on Friday.
Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said the local market would see some headwinds amid the heightening global volatility.
“Nonetheless, we believe accumulation of stocks will persist on dips. As such, we anticipate the KLCI to hover within 1,470-1,490 for the remainder of the week, with immediate support at 1,460, while resistance is at 1,500,” he said.
Bursa’s trading was also in line with key regional peers. Singapore's Straits Times Index fell 0.16% to 3,303.42, Hong Kong's Hang Seng Index slipped 1.71% to 20,529.49, and Japan's Nikkei 225 eased 0.21% to 27,473.10.
ActivTrades trader Anderson Alves said Asian equities were caught in sideways trade on Tuesday, with traders positioning for the US Federal Open Market Committee (FOMC) minutes on Wednesday.
“Currently, markets are pricing a slightly hawkish US Federal Reserve amid strong US employment data and mixed signals from the latest US consumer price index.
“Last week, some headwinds hit risk-on sentiment, after voting FOMC members started favouring a 50-basis-point hike in the next meeting in the event that data continues to show that price pressures aren't easing as much the committee had expected,” he said in a note earlier on Tuesday.
At the close on Tuesday, Bursa heavyweight Petronas Chemicals Group Bhd was 16 sen higher at RM8.36 a share, CIMB Group Holdings Bhd gained two sen to RM5.44, Hong Leong Bank Bhd was flat at RM20.40, Malayan Banking Bhd (Maybank) fell four sen to RM8.70, and Public Bank Bhd eased one sen to RM4.15.
As for active stocks, EG Industries Bhd jumped 21 sen to RM1.07, Velesto Energy Bhd edged up half a sen to 24.5 sen, Zen Tech International Bhd was flat at 3.5 sen, MMAG Holdings Bhd edged down half a sen to two sen, and MyEG Services Bhd declined 1.5 sen to 66 sen.
On the index board, the FBM Emas Index slid 13.20 points to 10,711.63, the FBMT 100 Index fell 7.27 points to 10,385.51, the FBM Emas Shariah Index trimmed 16.79 points to 11,057.99, the FBM 70 Index slid 57.27 points to 13,474.49, and the FBM ACE Index declined 83.52 points to 5,519,42.
Sector-wise, the Financial Services Index was down by 23.85 points to 16,041.50, the Plantation Index increased 38.91 points to 6,853.34, the Energy Index fell 4.37 points to 873.47, and the Industrial Products and Services Index improved 0.97 of a point to 188.76.
The Main Market volume shrank to 1.72 billion shares worth RM1.44 billion, from Monday's 1.85 billion shares worth RM1.77 billion.
Warrant turnover expanded to 424.71 million units worth RM68.59 million, against 391.79 million units worth RM57.0 million previously.
The ACE Market volume increased to 1.05 billion shares worth RM328.44 million, from 894.42 million shares worth RM311.97 million on Monday.
Consumer product and service counters accounted for 218.45 million shares traded on the Main Market, followed by industrial products and services (565.81 million), construction (71.31 million), technology (247.13 million), special purpose acquisition companies (nil), financial services (48.95 million), property (162.50 million), plantation (36.14 million), real estate investment trusts (8.86 million), closed/funds (42,100), energy (196.46 million), healthcare (74.94 million), telecommunications and media (38.63 million), transportation and logistics (42.75 million), and utilities (9.27 million).
Source: The Edge
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