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 15): Bursa Malaysia retreated from gains on Wednesday to close lower on Thursday (June 15) due to profit-taking activities, bucking the mostly positive regional market performance, said an analyst.
At 5pm, the FBM KLCI had slid 3.69 points, or 0.27%, to 1,381.73, from 1,385.42 at Wednesday’s close.
The key index opened 2.46 points lower at 1,382.96 on Thursday morning, and hit a low of 1,378.83 later in the day.
Market breadth was negative, as decliners outpaced gainers 546 to 361, while 403 counters were unchanged, 974 untraded, and 13 others suspended.
Turnover increased to 3.48 billion units worth RM1.80 billion, versus 2.86 billion units worth RM1.75 billion on Wednesday.
Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said regionally, the key indices ended mostly higher buoyed by the prospect of increased stimulus in China after the republic made more rate cuts.
Japan's Nikkei 225 eased 0.05% to 33,485.49, China’s SSE Composite Index rose 0.74% to 3,252,98, the Shenzhen Index jumped 1.81% to 11,182.94, Hong Kong’s Hang Seng Index put on 2.17% to 19,828.92, while South Korea's Kospi declined 0.40% to 2,608.54.
"The rate cuts point to increased liquidity conditions in the world's second-largest economy, potentially offering temporary market support in the near future. In addition, the US Federal Reserve’s (Fed) stance in keeping interest rates steady was also well received by investors," he told Bernama.
Thong said, nevertheless, investors had turned cautious and reluctant to make significant moves due to ongoing global economic uncertainty, coupled with the Fed’s hawkish comments, which caused the benchmark index to remain stagnant in consolidation mode.
"As such, we foresee the KLCI to trend within the range of 1,380-1,390 towards the weekend," he added.
Among heavyweights, Public Bank Bhd rose three sen to RM3.85, CIMB Group Holdings Bhd ticked up one sen to RM5.00, Tenaga Nasional Bhd gave up nine sen to RM9.11, Petronas Chemicals Group Bhd declined 15 sen to RM6.25, while Malayan Banking Bhd (Maybank) was flat at RM8.60.
Of the actives, Sarawak Consolidated Industries Bhd perked up 3.5 sen to 42 sen, KNM Group Bhd bagged one sen to 8.5 sen, Classita Holdings Bhd dropped half a sen to 10 sen, MyEG Services Bhd erased 2.5 sen to 83.5 sen, while Borneo Oil Bhd was flat at 1.5 sen.
On the index board, the FBM Emas Index was 31.53 points lower at 10,212.72, the FBMT 100 Index decreased 32.74 points to 9,906.42, the FBM Emas Shariah Index trimmed 52.74 points to 10,564.53, the FBM ACE Index dipped 94.19 points to 5,104.81, and the FBM 70 Index tumbled 70.83 points to 13,579.47.
Sector-wise, the Industrial Products and Services Index shed 1.18 points to 158.89, the Plantation Index slipped 6.44 points to 6,700.67, the Energy Index eased 0.21 of a point to 787.22, and the Financial Services Index climbed 19.87 points to 15,204.01.
The Main Market volume expanded to 2.43 billion units valued at RM1.54 billion, from 1.83 billion units valued at RM1.51 billion on Wednesday.
Warrant turnover swelled to 399.46 million units worth RM72.87 million, against 279.54 million units worth RM44.73 million previously.
The ACE Market volume dwindled to 642.95 million shares valued at RM190.47 million, from 746.61 million shares valued at RM201.37 million on Wednesday.
Consumer products and services counters accounted for 571.79 million shares traded on the Main Market, followed by industrial products and services (787.02 million), construction (41.01 million), technology (271.23 million), special purpose acquisition companies (nil), financial services (55.63 million), property (246.34 million), plantation (58.67 million), real estate investment trusts (6.35 million), closed/funds (nil), energy (224.12 million), healthcare (53.80 million), telecommunications and media (35.26 million), transportation and logistics (26.33 million), and utilities (57.22 million).
Source: The Edge
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