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 27): Bursa Malaysia extended earlier losses to end lower for the second consecutive day as Malaysia’s producer price index (PPI) contracted 4.6% year-on-year (y-o-y) in May 2023, which is faster than expected as compared with a 3% drop in April, said an analyst.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 3.14 points or 0.23% to 1,386.74 from 1,389.88 at Monday’s close.
The key index opened 0.99 of a point better at 1,390.87 in the morning and moved between 1,385.3 and 1,393.38 throughout the session.
The
broader market was also negative as decliners outpaced gainers 425 to
360, while 426 counters were unchanged, 1,124 untraded and 40 others
suspended.
Turnover increased marginally to 2.59 billion units worth RM1.51 billion versus 2.56 billion units worth RM1.41 billion on Monday.
Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said key regional indices ended mostly higher, particularly in China and Hong Kong, after Chinese Premier Li Qiang said the second quarter would witness greater economic growth compared to the first quarter.
Li also said that Beijing would implement more impactful policies to boost domestic demand and promote market openness.
Regionally, Hong Kong’s Hang Seng Index added 1.88% to 19,148.13, China’s SSE Composite Index rose 1.23% to 3,189.44, and China’s Shenzhen Index perked 0.97% to 10,978.08.
Thong said investor sentiment saw a positive shift in several countries within the region on the potential positive prospects in China.
“Back home, the valuation of FBM KLCI remains attractive at its current level, trading at the calendar year of 2023 (CY 2023) forward price-earnings ratio of around 13 times as compared with its five-year average of more than 17 times.
“Having said that, we anticipate that sentiment will remain cautious, influenced by the rising global volatility while selling pressure from foreign funds as a significant challenge,” he said.
Thong said he anticipated the benchmark index to remain in its sideways pattern, slightly biased towards positive, ranging between 1,385-1,400 for the rest of the week.
Meanwhile, SPI Asset Management managing director Stephen Innes said local markets were trading a bit softer but trading flatter than anything else as a bounce higher in commodity constituents after China’s confirmation of its economic growth target in 2023 was getting offset by global rate hike pressure.
“I think the Bursa Malaysia could remain range-bound ahead of Friday’s key US Personal Consumption Expenditure Price Index inflation print that could give investors clues on the future path of rate hikes from the US Federal Reserve Board.
“Locally, investors continue to hope for more policy stimulus out of China,” he added.
On the local bourse, heavyweights Maybank Bhd and Tenaga Nasional Bhd pushed up one sen each to RM8.71 and RM9.19, Public Bank Bhd dropped one sen to RM3.85, CIMB Bhd went down four sen to RM5.15, and IHH Healthcare Bhd lessened seven sen to RM5.82.
Of the actives, Sarawak Consolidated Industries Bhd and Jade Marvel Group Bhd ticked up one sen each to 44.5 sen and 20.5 sen, while Fitters Diversified Bhd, Widad Group Bhd, and Sapura Energy Bhd were flat at four sen, 42 sen, and 3.5 sen, respectively.
On the index board, the FBM Emas Index dipped 15.39 points to 10,194.31, the FBMT 100 Index trimmed 16.18 points to 9,898.06, the FBM Emas Shariah Index slid 15.6 points to 10,483.67, the FBM 70 Index put on 4.42 points to 13,382.42, and the FBM ACE Index was 14.73 points firmer to 5,045.03.
Sector-wise, the Financial Services Index shed 35.23 points to 15,386.32, and the Industrial Products and Services Index eased 0.29 of a point to 158.27, but the Energy Index edged up by 0.21 of a point to 781.32, and the Plantation Index perked 29.61 points to 6,748.42.
The Main Market volume expanded to 1.8 billion units valued at RM1.26 billion from 1.72 billion units valued at RM1.16 billion on Monday.
Warrants turnover dwindled to 218.45 million units worth RM38.82 million against 219.46 million units worth RM31.36 million previously.
The ACE Market volume dropped to 534.07 million shares valued at RM215.58 million from 624.68 million shares valued at RM216.62 million yesterday.
Consumer products and services counters accounted for 334.4 million shares traded on the Main Market, industrial products and services (633.26 million); construction (67.08 million); technology (143.81 million); SPAC (nil); financial services (54 million); property (214.88 million); plantation (34.77 million); REITs (6.7 million), closed/fund (500); energy (162.9 million); healthcare (43.37 million); telecommunications and media (37.73 million); transportation and logistics (21.96 million); and utilities (46.25 million).
Source: The Edge
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