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 16): Bursa Malaysia erased earlier gains to end lower on Thursday (Feb 16) due to profit-taking on a lack of fresh catalysts, as investors remained cautious amid the mixed performance of regional and global equity markets, a dealer said.
At 5pm, the benchmark FBM KLCI had dipped 3.93 points to end at 1,484.26, compared with Wednesday's close at 1,488.19.
The key index opened 0.35 of a point weaker at 1,487.84, and moved between 1,483.54 and 1,494.54 throughout the trading day.
However, market breadth was positive, as advancers led
decliners 527 to 403, while 410 counters were unchanged, 873 untraded,
and 16 others suspended.
Turnover increased to 4.56 billion units worth RM2.55 billion, against Wednesday's 3.49 billion units worth RM2.02 billion.
SPI Asset Management managing director Stephen Innes said local market sentiment remained on shaky footing as higher US yields on the back of sticky US inflation data, compounded by very strong retail sales, had markets thinking the Federal Reverse (Fed) will need to move interest rates higher and keep them there longer.
"However, the recent data is possibly due to seasonal trends, hence investors are really waiting to see how the Fed interprets the hot US data. In the meantime, the stronger US dollar is dissuading investors to add more local risk,” he told Bernama.
However, Innes said, with China's economic expectations still bright into the second quarter, and as oil prices started to move higher again, supporting oil and gas constituents, investors continued to nibble on dips.
“But for the KLCI to move decisively above 1,500, investors need to see some evidence of China's slingshot recovery into the second quarter,” he added.
Bursa heavyweights Malayan Banking Bhd (Maybank) lost three sen to RM8.77 a share, Public Bank Bhd fell one sen to RM4.17, Petronas Chemicals Group Bhd dropped two sen to RM8.20, Tenaga Nasional Bhd slid five sen to RM9.90, and CIMB Group Holdings Bhd was flat at RM5.43.
As for the active stocks, MyEG Services Bhd at 69.5 sen, Sapura Energy Bhd at five sen and Vinvest Capital Holdings Bhd at 23 sen were all flat. Hong Seng Consolidated Bhd slipped three sen to 18.5 sen, while Betamek Bhd was three sen higher at 61 sen.
On the index board, the FBM Emas Index slid 10.96 points to 10,815.68, and the FBMT 100 Index slipped 12.21 points to 10,481.27. The FBM Emas Shariah Index perked up 3.27 points to 11,177.28, the FBM 70 Index climbed 50.69 points to 13,699.98, and the FBM ACE Index rose 38.71 points to 5,749.55.
Sector-wise, the Financial Services Index declined 41.06 points to 16,119.99, and the Industrial Products and Services Index eased 0.25 of a point to 190.46, the Plantation Index shed 1.20 points to 6,901.70, while the Energy Index put on 8.56 points to 901.20.
The Main Market volume swelled to 2.96 billion shares worth RM1.99 billion, compared with Wednesday’s 2.29 billion shares worth RM1.64 billion.
Warrants turnover expanded to 556.92 million units worth RM83.58 million, from 359.74 million units worth RM50.75 million.
The ACE Market volume increased to 1.04 billion shares worth RM469.63 million, from 896.29 million shares worth RM330.37 million.
Consumer product and service counters accounted for 284.56 million shares traded on the Main Market, followed by industrial products and services (574.13 million), construction (113.66 million), technology (1.13 billion), special purpose acquisition companies (nil), financial services (66.95 million), property (151.59 million), plantation (27.22 million), real estate investment trusts (10.39 million), closed/funds (5,000), energy (325.57 million), healthcare (162.93 million), telecommunications and media (31.53 million), transportation and logistics (58.64 million), and utilities (19.08 million).
Source: The Edge
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