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 (June 19): Bursa Malaysia pared most of its earlier losses to end marginally lower Monday (June 19), tracking the downbeat performance in regional bourses as market sentiment turned cautious ahead of China’s rate decision and the US Federal Reserve (Fed) chair Jerome Powell’s upcoming testimony.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.28 points to 1,387.33 from 1,388.61 at the close last Friday.
The key index opened 4.72 points lower at 1,383.89 in the morning and moved between 1,379.83 and 1,390.5 throughout the trading session.
On the broader market, decliners outpaced gainers 452 to 371, while 426 counters were unchanged, 1,044 untraded and 25 others suspended.
Turnover decreased to 2.58 billion units worth RM1.47 billion versus 3.54 billion units worth RM3.25 billion last Friday (June 16).
A dealer said the local bourse opened broadly lower, however, buying interest in plantation and financial services counters helped to pare earlier losses.
Asian stock markets were also under pressure, taking the cue from Wall Street losses last Friday and as Chinese stimulus hopes fade after US and Chinese foreign ministers met and agreed to cooperate, he said.
Meanwhile, SPI Asset Management managing partner, Stephen Innes noted that as Wall Street is closed for the US Juneteenth National Independence Day on Monday, the trading volume in Asia and Europe will be much lower than usual.
“Still, investors will likely set the table for tomorrow's (June 20) interest rate decision in China, where it is widely expected that the key benchmark lending rate will be trimmed to jump-start a sputtering economy.
“With the wide disparity between the Fed and the market's forward inflation expectations, we might see some cautious trading, perhaps skewing to more profit-taking following Friday's soft sell-off in the US markets," he told Bernama.
Region-wise, Hong Kong's Hang Seng Index eased 0.64% to 19,912.89, China’s SSE Composite Index shed 0.54% to 3,255.81, South Korea’s Kospi slipped 0.62% to 2,609.5, Singapore's Straits Times Index lost 0.58% to 3,241.17, and Japan’s Nikkei 225 went down 1% to 33,370.42.
Back home, heavyweights Maybank Bhd rose eight sen to RM8.65, CIMB Bhd gained 10 sen to RM5.08 and Tenaga Nasional Bhd added two sen to RM9.22.
Of the actives, Sarawak Consolidated Bhd bagged 1.5 sen to 42 sen, KNM Bhd and Widad Bhd edged up half a sen to nine sen and 42.5 sen respectively, Top Glove Bhd lost six sen to 91.5 sen, while Borneo Oil Bhd was flat at 1.5 sen.
On the index board, the FBM Emas Index was 14.81 points lower at 10,232.81, the FBMT 100 Index slipped 13.27 points to 9,931.09, the FBM Emas Shariah Index dipped 52.89 points to 10,558.89, the FBM 70 Index declined 35.63 points to 13,549.08, while the FBM ACE Index added 2.67 points to 5,128.43.
Sector-wise, the Energy Index slid 4.86 points to 789.03 and the Industrial Products and Services Index eased 1.46 points to 159.33, while the Financial Services Index rose 99.9 points to 15,273.22, and the Plantation Index surged 106.17 points to 6,754.71.
The Main Market volume shrank to 1.78 billion units valued at RM1.26 billion from 2.56 billion units valued at RM3.01 billion last Friday.
Warrants turnover declined to 278.87 million units worth RM47.26 million against 376.42 million units worth RM57.82 million previously.
The ACE Market volume tumbled to 516.34 million shares valued at RM161.14 million from last Friday's 604.44 million shares valued at RM181.28 million.
Consumer products and services counters accounted for 263.3 million shares traded on the Main Market, industrial products and services (682.78 million); construction (46.59 million); technology (135.13 million); SPAC (nil); financial services (49.24 million); property (151.56 million); plantation (75.74 million); REITs (4.58 million), closed/fund (11,500); energy (171.81 million); healthcare (98.66 million); telecommunications and media (29.73 million); transportation and logistics (23.39 million); and utilities (49.87 million).
Source: The Edge
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